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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: David W. Ricker who wrote (3632)	11/20/1998 9:23:00 AM
From: Tom Smith	Read Replies (2) \| Respond to of 4509

David & all, Well, I will guess that Chuzz will probably blow a gasket on this news and, quite frankly, I couldn't blame him if (when) he does. This is a sell out of the shareholders, but unfortunately it is becoming more common all the time in high tech companies that have suffered large price drops. Complaints have been logged to the SEC about this practice by shareholders of other companies and I wouldn't be surprised to see some regulation of this practice in the next few years. I personally am disappointed by this decision on the part of PSFT. Tom

To: David W. Ricker who wrote (3632)	11/20/1998 12:33:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 4509

I can't say I'm surprised. In fact I predicted this about a month ago after PSFT's precipitous drop. This move is nothing short of robbery! The entire rationale behind options was to make employees (particularly senior management) sensitive to the price of the stock -- put managers and shareholders on the same side. But it has become a surrogate for cash salaries as a way to hide true costs. Forget about Momentum as a ruse for hiding costs. You need look no further than employee stock options. And when they reprice them that is like throwing salt on the wounds. This move is a breach of faith. In essence Duffield is saying that come what may, top management has a right to pick shareholders' pockets. I am disgusted! CTC