DannyD
The "O" word, that is pretty good and more prophetic than you realize. When anything begins to fall out of favor to the point that legislation is contemplated, it is time to step back and seriously consider the environment around us.
The "TS" word was used in 1980's in the law firms around town. TS stood for tax shelters and the management committees of the big firms had been seeking and engaging outside consultants to provide same for themselves and the employee/junior partners. The stated reason was to be able to be competitive, recruit and maintain the best talent available in the industry. The medium sized firms had to engage in such practices in order to keep up with the Jones'. They used these little jewels to show the recruits what they could expect to have at the end of the year on an after tax dollar basis. This carried over into the medical field and the oil patch. It was a way of life that had been created by the CPA's and if you were not on board, you were not building partner or shareholder value. Word came down from D.C. that the IRS and the congress were beginning to dislike the widespread usage of these little gadgets to avoid paying taxes. Human nature is funny. When TS first arrived on the scene, it was contemplated that their usage would be reasonable and just enough to to place the taxpayor into a lower bracket. Of course, the piggies took additional chances and ultimately killed the programs completely. The auditors came to town with a pick up truck full of paddles and blistered the fannies of the biggest users right in front of all of us and the TS salesmaen were out of business quickly. The moral of the story is when you hear rumblings coming out of Capitol Hill and/or D.C., you had better pay attention.
The "O" situation is very similar. It was a great idea for the start ups and it allowed companies and individuals to prosper. The perception is that it has been abused and the rumblings are that they have fallen out of favor in D.C. The tech industry has been a big proponent of the "O" vehicle and they have continued the use beyond start up. Some people prefer to post historical data to show that company sales correlate with company options. They provide a nice chart, but they have not shown a similar chart for sales growth of companies using less options during the same economic time period for comparison purposes. Some have shown share price growth with companies that issued a large percentage of options, but again they did not include a group of companies using a lower percentage of options for comparison. Naturally, they use the tech industry for the bubble effect.
Brad, I have not said no to the "O" word forever. I have said no at this time. For those using historical arguments, I only point out the "TS", "N", and "C" words mean something and if you use them around the work environment, it is going to cost a lot. The excuse that everyone is doing it will get you nowhere. Many did not heed the rumblings in D.C. and many paid dearly. There is a price for keeping up with the Jones's who continue to use methodology and practices that have fallen out of favor. I believe in rumblings and have a healthy respect for same. I believe that #2 is premature at this time. If next year the rumblings have died out or guidance has been handed down regarding the usage, then I believe this is the time to visit the issue. Mr. Tilden has indicated that 3g will occur on a slow and steady ramp upward. HG stated that increasing the staff is not in the cards at this time. The industry is in an employers market for employment purposes at the present time. 3g is stll at least 2 years away from significant commercial operations. If the expensing issues are finalized, the company has plenty of time to play the "O" game.
Brad, this management group has created "O" plans without shareholder approval in the past and if an emergency arises before the next ASM, I have the utmost confidence that they will do it again. A withdrawal or defeat at this time is not going to hurt the shareholder value one bit. However, a rush to judgment in the face of rumblings can result in hurting shareholder value.
MO
loop
AI
Market Data 
Markets 
