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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (114156)	4/4/1999 1:02:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

CTC, But if the cost is shouldered by the Ask Burke Thread, for example, as well as other LEAPS put buyers, why should the long investors care? Also, I disagree that the economic cost is unsupportable. For example, MSFT has about 40BB in outstanding options liability at present (I may be wrong about the exact number, but it should be in the ballpark). It was about 25BB a year back. Meanwhile, MSFT market cap has gone up some 150BB. Assuming that ESOPs are indeed conducive to better employee performance (it is to me and my wife, for sure, and very likely for our friends - and no, we do not work for MSFT but nevertheless have received options from our respective employers) and that leads to greater profitability and increased shareholder equity, I find that a 10% economic cost is acceptable. Again, I reiterate that I have no comments about the accounting issue, which I do not quite understand anyway. -BGR.

To: Chuzzlewit who wrote (114156)	4/4/1999 1:56:00 PM
From: rudedog	Read Replies (2) \| Respond to of 176387

Chuzz - One of the key problems with ESOPs is that they provide a benefit which is undifferentiated on performance, and which does not appear on the P&L so is not scrutinized. Imagine the outcry if DELL listed in their annual report a list of a thousand people, many of only routine capability, being paid cash bonuses in the high six figures? That is in fact what is happening - it's just that shareholders pay this as a hidden tax. I think that an up-front stock-indexed performance bonus would be a lot more powerful as a motivating tool and also a lot more accountable.