i agree the GOOG deserves some credit for giving this a try & streamlining / innovating around the process, however i think original innovation in this area started with Microsoft enabling buyout of underwater options in 2003, also Cisco last year offering something similar. possible it could have begun even sooner at other locations.
also, while this means that underwater options are worth something, it still doesn't mean they're worth more than options at a startup that has all of its upside potential ahead of it. innovative/intelligent yes, defensive move sure, but they are still fighting an uphill battle on the future growth potential of GOOG stock, given where it's at already.
personally i think the company's market cap still has more room to grow, but the perceived downside risk is now rather substantial. as with the california real estate market some folks may decide to get out while the getting is good ;)
(ps - happy holidays shri)
Shripriya
· 2 years ago
Hi Dave, I agree that you can't really compare it to a startup, but that's the purpose, I think -- to delay someone jumping to a startup for purely monetary reasons.
And I think anyone joining Google today, if they are joining for the upside in the stock has to believe that they are*still* an early MSFT. I am not sure that they are that early any more, but I've heard a lot of potential employees believe that.
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also, while this means that underwater options are worth something, it still doesn't mean they're worth more than options at a startup that has all of its upside potential ahead of it. innovative/intelligent yes, defensive move sure, but they are still fighting an uphill battle on the future growth potential of GOOG stock, given where it's at already.
personally i think the company's market cap still has more room to grow, but the perceived downside risk is now rather substantial. as with the california real estate market some folks may decide to get out while the getting is good ;)
(ps - happy holidays shri)
And I think anyone joining Google today, if they are joining for the upside in the stock has to believe that they are*still* an early MSFT. I am not sure that they are that early any more, but I've heard a lot of potential employees believe that.
Happy Holidays to you too, Dave! Love to all!