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

To: Lockeon who wrote (114169)	4/4/1999 3:49:00 PM
From: rudedog	Read Replies (3) \| Respond to of 176387

L - I have no doubt that MSD, Merideth, and many others on DELL's senior team deserve the financial rewards they receive. I am equally sure that many in middle management ranks do not - they just happened to "win the lottery" through lucky timing or getting on board early. These incentives are not tied to performance - just the opposite. A grant given to an employee for performance years ago which is now worth millions is an incentive to slow down and "smell the flowers", not an incentive to drive company performance. The same money tied to a variety of company goals would be more effective IMO. There are ways to have the bonus linked to any metric, including stock performance, which do not have this inherent weakness. The question is not whether the money is deserved, but whether these plans should be hidden from the shareholders, not only at DELL but in the industry in general. Suppose we have 2 companies with equal balance sheet performance, one of which has on average 3X annual revenues out in potential ESOP grants, and the other of which has only 5% of annual revenue in such programs. Which one is a better investment? I don't pretend to know the answer but at present no one is even asking the question.