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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Sampat Saraf who wrote (10109)	2/16/1999 2:14:00 PM
From: Xianming Liu	Respond to of 11555

<However, the stock options may not be worth much if they do not execute. Salary is about what they can count on. I am sure stock options give incentive to management to perform.> If the IDTI's stock price move higher, the options that the management has will certainly worthy more than what they are currently. However, you have to remember that the pre-1996 options were re-priced in August of 1996 and the most of these re-priced options are still in the money. The reason for the re-price in 1996, as we were told, is to allow the management to pursue the long-term success of the company. I do not know how long the management think is the "long-term". But losing more than 290 million dollars since the re-price certainly does not qualify as an success. The simple fact is that shareholders get hurt disproportionally more than the management for the management's incompetence.