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Strategies & Market Trends : Good Investment Theses: VALUATIONS w/ FUNDAMENTAL ANALYSIS -- Ignore unavailable to you. Want to Upgrade?

To: The Philosopher who wrote (136)	5/5/1999 5:15:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 160

Christopher, I think you miss the point. Compaq will be forced to do something because so much of the compensation of executives comes from ESOs. The impetus is not the law suit. They have three choices: 1. Ante up the cash by repricing the options (tantamount to stealing from investors which will cause investors to cry foul and trigger further investor law suits); or 2. Increase salaries by cash payments which will cause a significant dent in earnings and trigger further investor law suits; or 3. Do nothing, in which case they minimally will suffer a loss of their top talent. I can almost guarantee that choice 3. will not be considered. TTFN, CTC