Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: dbblg who wrote (29370)	5/7/1999 7:24:00 AM
From: Michael Allard	Read Replies (1) \| Respond to of 152472

Option Issue: It's ironic that these Infastructure employees are set to loose their options due to the sale of the division when it is the sale of the division itself that caused their options to be "in the money"! Without this deal and settlement with ERICY, we might still be trading at $60 - $68! Investors have certainly sent the message that the stock is worth more without the infastructure division than with it. I don't mean any dis-repect to the 1700 Employees who are effected.

To: dbblg who wrote (29370)	5/7/1999 8:45:00 AM
From: Jeff Vayda	Respond to of 152472

Ganesh, thanks for the article link. From it "The legal issue is not what's important here; what is at issue is employee morale and a sense of fairness," Jacobs said. "It's an expensive proposition, but we are trying to find the right balance between fairness to employees as well as fairness to our shareholders."... Under a complex "retention bonus plan" jointly funded by Qualcomm and Ericsson, the affected employees will be offered a percentage of the value of their unvested options. The employees must stay at Ericsson for two years to get the entire payout. The retention bonus plan is available only to employees hired by Ericsson and who sign a document by May 7 waiving their right to sue either company. Even under the retention plan, employees will lose all options that vest after May 31, 2001. Neither firm would quantify the cost of the bonus plan. But Jacobs said Qualcomm will report about $100 million in sale-related charges next quarter and that a "significant part" of the charge stems from the planned retention bonus. Given that I believe the first quote by Jacobs, and the fact that he stated last month that they had another $100 million to write off next quarter for the infrastructure sale (as also stated in the article) I think he planned all along to make good on some of the options. I think it is Eric who is dragging their feet in funding the program. The patterns developed in the past are continuing. Eric is going to make the deal very tough to get done. They have missed their chance to show the people some different spots. Jeff Vayda