Replies to post #61703 on Intel Corp (INTC)

[Golfbum]

the theory of options or rsu is that they represent golden handcuffs for valuable employees. it makes them more difficult to lure away.

in a business where a lot of what goes on is ip covered only by secrecy rather than patents it makes sense to try to keep folks with essential knowledge close to home.

gb

[wbmw]

Re: If you want to keep the good people, then identify them and pay them a good salary.

You can pay someone any amount of salary, and still they can be lured away by a competitor willing to pay more. But if you capture their interest with an incentive program that includes a vesting period (stock options and RSUs included), then they have more of a reason to stay. If they leave, then all their unvested options and stock units disappear.