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Re: options

By: DigSpace in ALEA | Recommend this post (0)
Tue, 23 Apr 13 12:07 AM | 82 view(s)
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Msg. 13356 of 54959
(This msg. is a reply to 13351 by Cactus Flower)

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its the granting of new options not the renewal of old. The old ones have been diluted (he has some 75k expiring this year ... he is being granted 300k. The granting is adjusted up to compensated for dilution. renewal is not enough, that is renewing the diluted which is inadequate to maintain ownership percentage.


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The above is a reply to the following message:
options
By: Cactus Flower
in ALEA
Mon, 22 Apr 13 7:41 PM
Msg. 13351 of 54959

dig,

i think the mechanism by which the ceo maintains his option equity is that he receives more options when the old ones expire.

wave would describe this scheme as incentive-based compensation.

the scheme has excellent incentives for an entrenched ceo in a company whose share price has declined relentlessly. he seems to get more options the worse the stock performs.


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