In general cell phone ringtones sprint info motorola personal remember ringtones v220…

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Here’s the filing if anyone is interested. I haven’t read it.

IMO, this now just makes it easier for those employees planning to leave but whose options are under-water to sell them using this program (for a profit?) and look for greener pastures elsewhere.

Without this program the employees would have at least waited in hope for their options to be any worth “n” years down the lane?

What am I missing?

I’m not a finance person, but I have a blog post examining implications of this program. I consider the various effects on Google’s stock issues and related options ramifications.

Also doesn’t it defeat the purpose of vesting if you don’t have to stick around until you can stick around and complete the vesting process?

I guess I shouldn’t be commenting without reading the policy myself, but it’s creative practices like this that /really/ skew playing field and pump up bubbles.

“By selling a stock option early, employees will make the difference between the initial price and the current price.” — That’s not correct. They would make this profit regardless of when they sold the option, and has nothing to do with selling early.

“This program will allow employees […] to sell options to qualified institutions via a private auction […]. This will raise the value of the options, while raising the cost of options to Google.” - That’s not correct.

A stock option gives the holder the right to purchase a stock at the “strike” price, which is set at the time of the option purchase. The idea is, in the future the price of the stock (market price) will be much higher than the “strike” price, allowing the holder of the option to reap the benefits between the two prices.

The only reason the value of an option goes up, is if the spread between the strike price and market price increases. Employees being able to sell their options to qualified institutions, doesn’t increase the cost to Google in anyway. Cost will increase if the spread between the option strike price and market price increases, and decrease if the spread decrease. Regardless of whether institutions hold the option, or employees hold the option, the cost to Google is the same.

Typically employee stock options aren’t transferrable meaning that employees can only profit from options by exercising them when the market price is greater than the strike price. This new program benefits employees in two ways. First, employees will be able to sell options to financial institutions for a premium above the current strike-market price because of the time value of the options. Second, employees with brand new options, where the spread between exercise-market is negative, will be able to profit if the premium paid for the options is above the that negative spread.

While this sounds rosy and cheerful on the cover, it is not exactly the purpose of stock options. Stock options give incentive for employees to increase the value of the firm (stock price up) since the spread and their profit from the option is getting larger. By allowing them to sell their options early/immediately for a premium, the profit can still be reaped by employees, but it takes away the incentive for them to work hard and increase firm value. Stock options align both the employee and stockholders interest, but this is now eliminated due to this program.

http://www.revafinancial.squarespace.com

the average wage in china is way less than a dollar a day

india a 10 hour day is 70 cents

quatemala is about a dollar a day…

knowing this…makes me less upset if I miss my morning donut