RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Another chuck is purchased ....But they are usually a part of compensation.. Why would he pass up on the part of compensation that everyone else gets? Unless he gets a larger cash salary than he otherwise would with the options or a larger commission than he otherwise would get.
I like the options because they are tied to the share price and it places greater pressure on the leadership of the corporation to require share price performance. If they pay out great commissions on great sales but it doesn't do anything for the share price, then they are not working for the owners but for themselves. Granted, when they give options with virtually no inherent performance targets, that defeats the whole purpose of those options. The TEI option plan unfortunately is not designed to the benefit of shareholders given how few times they were exercised after 5 years and every year they keep getting more, and not necessarily at a higher price.
Dragunov wrote: panapple42 wrote: Why would anyone buy into a stock in the perfect sales environment with record yearly sales?
Even the VP NA sales has no stock options.
He doesn't need stock options if he believes in what he and the TMG are doing. Stock options are a risk-free bonus that require neither faith nor effort from the beneficiary.