Replies to post #11844 on PowerLinx Inc (PWNX)

[Francois+Goelo]

Zag, compare Apples with Apples...

SEVU is no more than a start-up company that cannot afford remunerations on the scale of Cisco or Microsoft... Remuneration by way of Dirt Cheap PP's solely reserved to Insiders is a good recipe for Legal problems...

Good executives are rewarded with Warrants or Options at a small discount to the Market, say 20/25%, or so for a duration of no more than 2 years... If the CEO does a good job, the stock should double or treble during these 2 years... When he exercizes the options, cash is paid into the company AND the CEO is amply rewarded...

If SEVU is properly run, the stock price should grow more than five folds over the next 2 years... If 300,000 Options are given to the CEO @ 35 cents now and the stock is @ $2.30 in 2 years, he will have made: 2.30 - .35 = $1.95 x 300,000 = $585,000, which I find more than ample... Sevu will also receive 300,000 x .35 = $105,000 when the Options are finally exercized...

JMHO, F. Goelo + + +

[TAfirehawk]

zagdad, thanks for some REAL examples of upper management compensation in other companies. I don't like the dilution any more than the next guy, but lets take two steps back and look at this PP objectively.

JMHO, Adam Jordan