Monday, June 26, 2006

WHAT'S WRONG WITH OPTIONS TIMING, YOU ASK? -- "Stock options are supposed to align the interests of executives with those of shareholders, not give the former an unfair advantage at the latter's expense. A difference of a few dollars in the share price can add up to millions in profit given the large size of many grants to executives. Option timing undermines the whole point of a stock option, which is to give executives the incentive to put in the extra effort to ensure that the corporation performs better. Then when the stock rises, shareholders and executives alike benefit."