UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: TheDreamer Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2049  
Subject: Re: Is it true? Date: 3/3/2006 8:48 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Well, it probably has to do with FASB 123(?) which changed how stock based compensation is reported....which affects a company's bottom line, so it has become unpopular.

Also affected were Employee Stock Purchase Plans....which used to offer a 15% discount of the lower of the start or end of the purchase period as the purchase price. Which was great incentive for employees to acquire stock...but now that it is considered compensation....they only offer it with a much smaller discount at use the price at the end of the purchase period....and the discount is to offset handling/commission fees to get the stock (otherwise it would be considered compensation...)

Though I know that around this time, the company did come out with a new stock option plan...which they said would be restricted for use as employee incentatives. Though I haven't heard anything further, though it is hard learning things since I was part of the 3rd of the company to get the axe because it wants to acheive an 18% profit growth every year...under the assumption that revenues will remain flat.

At least the my remaining unexercised/vested employee stock options ceased to be underwater and I was able to exercise them before their change in expiration due to job termination.

Now I'm watching/waiting for a good time to sell the shares that I had acquired through ESPP....some of which I have to wait until next year for the long term cap gains rate.... Which'll hopefully be long enough for there to be a gain to benefit from holding on it.

The Dreamer.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement