Replies to post #416051 on Zeev's Turnips Patch-No Politics (ZEEV)

[Stock]

sure. ok.

AMAT options overhang has been enemy #1 in the analyst community.

They are not going to award their top exces unless they perform. They are not going to get the accelerated options. This the filing does say. Their option expense is the greatest overhang.

This acceleration is for everyone below the executive suite, and they ARE accelerating the expense to 2005 for everyone but the top dogs.

This is how I read it -- net effect zero, as they had already booked an expense for options in 2005 and this will actually be a bit of an expense reduction in 2005, imo, based on the numbers I keep up with.

If you want to go read all their Form 4's have at it.

[urmygold1]

well how about these bigwigs at msft and amat and others have not had good prices in the last 4 years to sell their options shares that is part of their pay packages, and as prices rise we should see a rise in their selling activity!they have extreme homes and boats to pay for you know{vbg} ;O) URMY!

[Zeev Hed]

A lot of confusion about AMAT acceleration. The way I see it, the "savings" is only in "potential" recognition of "cashless" expenses, in case AMAT stocks goes above $18, when these option were to vest. By vesting them at once, when the stock is under the strike price, they avoid the need to recognize the difference between the option strike price and then actual price (at the time of vesting) as a "compensation expense". Not a bad thing. As a matter of fact, they probably should grant options only at the current price and let them vest at once to avoid any compensation expenses.....