Replies to post #8112 on GTC Biotherapeutics (fka GTCB)

[mouton29]

I agree, it seems foolish to think that an officer will feel less pain as a result of the decline in the value of his equity holdings in his employer (including, in Cox's cases, options to acquire several 100 thousands of shares) than he would if the decline were in the stock of another company -- or that any other large shareholder feels. Indeed, since a low stock price impedes future financings, it makes his future fixed salary less secure.

[poorgradstudent]

>if you lose money, thats not salary, it's not important. <

Ask Dr. Cox if, next year, he would rather take a 50% cut in the number of options he receives, or a 50% cut in his take home salary?


Please note i'm speaking options only.

It may not satisfy economists, but imputing a value to stock options for fledgling biotechs is, in most instances, nothing more than a mathematical exercise. Cox's answer to my question above would tell you how much pain he feels from a decline in the theoretical value / chance of exercise of his options.