The stock options game, alive and well at Tyco
: Tyco International Ltd.
, New England’s very own contribution to the list of disgraced corporations of the ‘90s, has given its new CEO, less than six months on the job, a $4 million bonus and stock options now valued at $49 million. Echoing Warren Buffett’s criticism of the use of stock options, one expert is quoted in the story: ''If Tyco were charging its earnings for this kind of compensation, they'd think twice about giving a grant of that size because their earnings can't bear much loading as it is.'' ... Can’t find Warren Buffett’s past criticism of corporations that don't count stock options as a bottom-line expense. But here’s his Berkshire Hathaway
site. Buffett’s annual reports to shareholders, as you probably know, are classics. Read some of them when you have a chance.
Update - 1:20 p.m.
- TC sends in this link to a Warren Buffett op-ed
that originally appeared in the NYT. Thanks.