Intel cuts back options for stock

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My thoughts, they could/should have expenced them.

Granting stock to an employee is in my opinion a very good thing. The company does well, the employee does well, not so well and that is reflected in the value too. In other words it provides a real incentive to see the company you work with do well.

This new plan (vested in four years) simply doesn't meet the criteria as does the previous system. Heck, an employee may be hired for one or two years based up his/her expertice in a specific area adn then leave. In such a case Intel makes out like a bandit selling what ever the employee came up with, and the employee gets very little out of it because he/she wasn't vested.

Note that Intel said this is better because employees are no longter concerned with the value of the stock. Ummm guys, the whole idea is that they ARE concerned about the companies staock value. Was this a "Well Duh" moment for you?

The "right" thing to do here would be to maintain the existing stock option program and pay the bill (expence them) when it's due. Of course that means there is no opportunity to "float" the expence hoping value of the stock goes up or any of the other little "accounting tricks".

I guess the idea was it was great to use stock as an incentive, as long as they didn't have to pay the bill. As ususal, when push comes to shove, it's the employees that are going to take it in the backside...

Posted by: No_Ax_to_Grind   Posted on: 12/16/05 You are currently: a Guest | Members login | Terms of Use

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