Jimlur,
Corp_Buyer
"If they were really smart, they would exercise options and HOLD the stock for a year to benefit from a lower capital gains tax rate. NO, INSTEAD they exercise and SELL immediately."
I agree with that comment.
Sorry, but I totally disagree with that comment. Anyone who has been in the ISO game the last several years realizes that the landscape has changed. For those that do not know, exercising the options triggers a taxable event.
How many former technology millionaires that followed the standard "exercise and hold for a year to get preferential AMT treatment" are now bankrupt? In some sad cases the former execs not only had worthless assets, but they even OWED tax on the difference between the grant price and the market value when they exercised.
I don't believe for a second IDCC's value is going to plummet. And I doubt Colson does either. But that doesn't mean he should not be prudent with his holdings.
I see the debate has once again shifted from excess compensation to insiders sales -- and the emotional ones are now having a hard time distinguishing between the two issues. On top of it IDCC insiders, who already have a significant portion of their total net worth tied up in IDCC, are being questioned for not purchasing shares. The arguments against excess compensation, which I believe originally had some credibility, have now crossed over into nonsense land.
You can't simultaneously argue that insiders are overpaid in IDCC holdings -- and then turn around and chastise them for not using out of pocket funds to buy more shares. It doesn't work both ways. If they have too much IDCC equity from the compensation plan, why would they buy more stock? And if one believes insiders should be buying more, then one must not think they hold enough already. You see the point, Jim?
The debate isn't much of a debate anymore. It's just a shouting match with a couple insults inserted here and there for good measure.
Most everyone on this board agrees IDCC has potential to grow significantly from newly signed 2G deals and the promise of 3G revenues. That should be the board's focus, and I'm going to do my part to comment on core IDCC issues. Hopefully others will also focus on that. Loophole has done a fine job taking the lead in that regard, and for that he should be commended.
Cheers.
postyle
AI
