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Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV -- Ignore unavailable to you. Want to Upgrade?

To: art slott who wrote (3681)	5/16/1999 9:13:00 PM
From: StaggerLee	Read Replies (1) \| Respond to of 13157

>>If the market cap goes down by the end of the year his payout is reduced. The economic impact on the corporation occurs when the options plan (or any other stock plan) is approved by shareholders. What happens after that is irrelevant. On occasion, like now, the insanity of these kinds of plans becomes apparent. The problem here isn't that the stock is going up. The problem is that Samuels and management have been given too many shares, and naive investors like you are going to give them even more. We can't blame Bill Samuels. He's just trying to make as much money as he can. We can, however, blame you.

To: art slott who wrote (3681)	5/17/1999 9:42:00 AM
From: Mike Fredericks	Read Replies (1) \| Respond to of 13157

If the market cap goes down by the end of the year his payout is reduced. Well, we've established that the market cap will likely go up even if the stock price goes down due to Liberty exercising options and the company having to issue more stock. But let's assume the market cap does go down. How is his payout reduced? Would he repay what he has already been paid? The quarterly report said 46% of expenses (a few $million) were allocated for the compensation plan. If the market cap goes down would the company take a credit in a later quarter? Lets separate the facts from the fiction. Fact: for every penny of profit the company makes, the company is going to pay Samuels 2 pennies, if a P/E of 100 is assumed. I hope you realize that this type of plan will make it virtually impossible for the company to ever turn a profit on paper. All the profits and then some would go straight into Samuels' pocket. Is this good for a shareholder? If all you are concerned about is today's stock price, and you are willing to assume that internet-type valuations will apply to IATV and that the street won't care, then maybe you're right. If inflation turns up and only profitable companies can carry high stock prices, you may suddenly care when IATV drops back to the $5 range... -Mike