Thursday, April 20, 2006

From Donkey's e-mailbox

"I say give Hughes another 1,000,000 options at 6 bucks and we get better press releases." - Rambus LTL

1 comment:

Empiricum said...

Seriously, I hope that the options proponent is simply kidding as a sarcastic criticism on the lack of timely press releases from Rambus Inc. management. (It should be noted that IR did issue a press release today, albeit a little late.)

Upon reading last week the Treowth post on the stock options as part of the compensation package of the new CFO, I was about to write an op-ed on the matter but I held off because Any Donkey was out of town and to give more attention to the anticipated verdict. But now that this matter about executive / employee stock options is again mentioned, I think it's time to voice an opinion on this matter.

Excessive executive stock options was brought yesterday to the attention of Wall Street and the Attorney General of Minnesota in the case of United Health, and its alleged practice of "backdating."

A few years back, this horrible and financially unsound practice of excessive grants of stock options, including what is called as "golden parachute" upon termination of employment, brought the downfall of the old KMart, Enron, JDSU, to mention a few.

Rambus is not far behind from this "poison pill" ! INSTEAD OF USING ITS STOCKS TO COMPENSATE ITS EXECUTIVES AND EMPLOYEES, RAMBUS SHOULD USE ITS BILLION DOLLAR CAPITALIZATION! This will stabilize the PPS for a longer period of time. Without casting any innuendo, cash payments will also avoid insider trading!

JMHO.

 
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