Rambus (RMBS)

[Threejack]

re: So, what's the big deal about the options?


Hey LOlo,

The big deal about the options is just what Mr. Dowd explained to Mr. Hughes. It is the magnitude of the awards and the structure of the plan.

Thanks for posting the trend in the option awards to management.

Listened to the call and didn't hear it the way you recall it. Heard Mr. Hughes say something closer to "if you fervently oppose the use of stock options, sell your shares and buy Coke." I use dial-up, so won't bother reloading and relistening to his exact words, but feel free to do so and correct me.

As I recall, Mr. Dowd contrasted the number of options granted to QCOM employees versus the number granted to Rambus employees against the ratios of market cap and number of employees at each company. It was an enlightening exercise, and annoyed Mr. Hughes, no doubt.

Spent a career at a Fortune 50 company and witnessed firsthand many, many verbal public challenges to senior executives, including multiple Chairmen, CEOs, Presidents, Executive VPs, etc., from employees and shareholders in group settings. Never heard one suggest the challenger sell the stock. Executives who are a good fit to the job don't lose their poise in public. Their confidence begets a mock kindness toward lesser souls to avoid any suggestion of bullying. When confronted, most use humor to disarm their challenger. For all I know, Mr. Hughes may be a perfectly charming man in private, but he needs some serious work on his public people skills.

Just my opinion.

Threejack