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To: John Valentine

I don’t get “preferred” stock offers from IPO’s because I’m not an insider. What the hell does that have to do with salaries?


65 posted on 01/20/2013 8:05:25 PM PST by Fledermaus (The Republic is Dead: Collapse the system. Fire all politicians and impeach the judges.)
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To: Fledermaus
What the hell does that have to do with salaries?

That you have to ask this question at all proves my point. We have a lot of people on this forum who don't understand much of business or economics.

What do stock options (not "stock offers") have to do with salaries, you ask?

Stock options are a common component of executive compensation, which typically consists of a direct payment component, a fringe benefit component, and a stock options component. Ideally, the stock options should vest only upon the successfully meeting one or more pre-established criteria such as a defined net income or market share, or the achievement of a specific task, such as successfully completing certain development milestones.

Occasionally, stock options are granted to board members as part of their compensation packages. This is a practice which has attracted some well-deserved criticism. Better, in my opinion to restrict board members to cash compensation.

I hope this answers your question, at least in part.

66 posted on 01/20/2013 8:59:52 PM PST by John Valentine (Deep in the Heart of Texas)
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