Comments on: Starbucks and Google Announce Underwater Options Exchanges http://www.knowhr.com/blog/2009/01/22/starbucks-and-google-announce-underwater-options-exchanges/ Know More HR. Wed, 17 Mar 2010 20:07:50 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: kumara http://www.knowhr.com/blog/2009/01/22/starbucks-and-google-announce-underwater-options-exchanges/comment-page-1/#comment-36051 kumara Mon, 26 Jan 2009 18:05:17 +0000 http://www.knowhr.com/blog/?p=1231#comment-36051 Repricing stock options is a bad idea. The very idea behind stock options is defeated by repricing. If company wants to ever reprice, this should require 2/3 rd majority share holder approval. Unfortunately in reality, shareholders are powerless in many of these matters.<br>The best course of action is to got out of companies that reprice their options. Repricing stock options is a bad idea. The very idea behind stock options is defeated by repricing. If company wants to ever reprice, this should require 2/3 rd majority share holder approval. Unfortunately in reality, shareholders are powerless in many of these matters.
The best course of action is to got out of companies that reprice their options.

]]> By: HR World » Blog Archive » Friday Links: Mergers, Blitz the Ladder, Underwater Options http://www.knowhr.com/blog/2009/01/22/starbucks-and-google-announce-underwater-options-exchanges/comment-page-1/#comment-35397 HR World » Blog Archive » Friday Links: Mergers, Blitz the Ladder, Underwater Options Sat, 24 Jan 2009 12:44:38 +0000 http://www.knowhr.com/blog/?p=1231#comment-35397 [...] Starbucks and Google have announced underwater options exchanges. Read about them on KnowHR. [...] [...] Starbucks and Google have announced underwater options exchanges. Read about them on KnowHR. [...]

]]> By: mszypko http://www.knowhr.com/blog/2009/01/22/starbucks-and-google-announce-underwater-options-exchanges/comment-page-1/#comment-35019 mszypko Fri, 23 Jan 2009 14:53:50 +0000 http://www.knowhr.com/blog/?p=1231#comment-35019 What type of option exchange program is out there for the shareholders? <br><br>I agree that, as you hypothesize in your other posting, communication may be the new compensation, but I wonder what these messages communicate? How about ..."Here is an incentive tied to company performance (in this case stock price) and if we do well we will all reap the benefits along with our shareholders and if we do poorly only the shareholders will be punished!" That is essentially what these programs communicate. <br><br>What ever happened to management? Why cant we expect management to manage in tough times? The time is ripe for them to be providing the "compensation of communication". Sharing the company vision, the strategy as to how we get out of this mess, the call to arms for all employees to pull together to make this company great again .... even in a tough economy. <br><br><br><br>Reprice... exchange ....swap .... they all equal:<br> A bailout for poor decisions made within a business<br> A bailout for stuff that happens in bad times ( maybe we should reprice in good times too? )<br> A bailout for managers who don't have to manage in tough times, they now have more candy to toss ... <br> A bailout for shareholders who might have been looking to use the proceeds from their investment to retire or pay off their mortgage or send their little ones off to college .....wait ... oh never mind no bailout for shareholders<br><br>Sorry for my ranting, I just don't understand why we do these things! What type of option exchange program is out there for the shareholders?

I agree that, as you hypothesize in your other posting, communication may be the new compensation, but I wonder what these messages communicate? How about …”Here is an incentive tied to company performance (in this case stock price) and if we do well we will all reap the benefits along with our shareholders and if we do poorly only the shareholders will be punished!” That is essentially what these programs communicate.

What ever happened to management? Why cant we expect management to manage in tough times? The time is ripe for them to be providing the “compensation of communication”. Sharing the company vision, the strategy as to how we get out of this mess, the call to arms for all employees to pull together to make this company great again …. even in a tough economy.

Reprice… exchange ….swap …. they all equal:
A bailout for poor decisions made within a business
A bailout for stuff that happens in bad times ( maybe we should reprice in good times too? )
A bailout for managers who don't have to manage in tough times, they now have more candy to toss …
A bailout for shareholders who might have been looking to use the proceeds from their investment to retire or pay off their mortgage or send their little ones off to college …..wait … oh never mind no bailout for shareholders

Sorry for my ranting, I just don't understand why we do these things!

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