Comments on: A Funny Story About Stock Splits and Options http://allfinancialmatters.com/2007/07/25/a-funny-story-about-stock-splits-and-options/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: The Digerati Life http://allfinancialmatters.com/2007/07/25/a-funny-story-about-stock-splits-and-options/comment-page-1/#comment-123979 The Digerati Life Sat, 28 Jul 2007 16:28:27 +0000 http://allfinancialmatters.com/2007/07/25/a-funny-story-about-stock-splits-and-options/#comment-123979 ok that is funny! Sounds like he buys into the conspiracy theory huh. ok that is funny! Sounds like he buys into the conspiracy theory huh.

]]> By: Customers Revenge http://allfinancialmatters.com/2007/07/25/a-funny-story-about-stock-splits-and-options/comment-page-1/#comment-123460 Customers Revenge Thu, 26 Jul 2007 20:04:54 +0000 http://allfinancialmatters.com/2007/07/25/a-funny-story-about-stock-splits-and-options/#comment-123460 That's an example of wasted compensation for that guy. The company shells out money for options in order to create a long term incentive for this guy to work for the company, however all it succeeded in doing was building suspicion against the company. The HR people at your wife's company may want to start an education campaign to explain how the options work. It is the same in my company: we get share discount shares, and sometimes we get options and share grants. However some employees consider them to be like cash and just sell them as soon as they vest. As well, since at the time of grant they are out of the money, they are considered by some employees to be fake in some way; a little like your wife's coworker. It has the opposite effect and it's wasted. That’s an example of wasted compensation for that guy. The company shells out money for options in order to create a long term incentive for this guy to work for the company, however all it succeeded in doing was building suspicion against the company.

The HR people at your wife’s company may want to start an education campaign to explain how the options work. It is the same in my company: we get share discount shares, and sometimes we get options and share grants. However some employees consider them to be like cash and just sell them as soon as they vest. As well, since at the time of grant they are out of the money, they are considered by some employees to be fake in some way; a little like your wife’s coworker. It has the opposite effect and it’s wasted.

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