When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Tuesday, September 24, 2013

Restricted Stock, Stock Options, Greed

Stock Option, Restricted Stock -- corporate management looking out for management, not shareholders --

How BlackBerry Handled Past Wealth - NYTimes.com: "Restricted stock grants, on the other hand, have less upside. They also have a continuing downside, because an executive holding such shares will stand to lose money as the stock price declines, even if it is already worth less than when it was issued. Some argue that does a better job of aligning executive interests with those of shareholders. In practice, companies tend to prefer options when they think the share price will rise, and restricted stock when they are not so confident. That is the way it worked at BlackBerry. The last large option grants to senior executives were made in October 2007. A year later, the stock price had peaked — at $148 in June 2008 — and was down to about $70. No options were granted. Instead, restricted stock units were issued."


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects