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CapitalSource Inc. Message Board

  • dexterjudge dexterjudge Aug 22, 2011 2:36 PM Flag

    masking of options to employees

    great discussion currently ongoing about buybacks simply masking option awards to employees which is exactly what is going on at CSE. "Financial engineering" is the term used.

    Good example, CSE does a buyback in Dec. 2010, instead of dropping amount under 300 million it dilutes through options and restricted shares to 312 million +.

    Look for yourselves and read the tea leaves.

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    • Every major company give stock options to thier employees....what is so unusual here?? The buy back at these prices sum up to about 30M shares....not exactly the number of shares given to their employees bud.

      • 2 Replies to sirius_yomama_2
      • BTW maybe you could explain something to me. If you own as many shares as you claim and everytime you pump the stock the SP falls like a rock has that taught you anything? Just food for thought.

      • The point being made in the discussion was that if a company is truly buying back and retiring shares the count would go down. The person reported "some" companies use buybacks to mask those "rrwards to employees, mainly upper upper management. They focus news on the buyback and low key or ignore all together the option rewards. I wrote and asked for an explanation and after 10 days I got an answer that they retired the shares of the buyback and completely skipped any response of the rewards. Its the old trick a magician uses to focus an audiences eyes on the right hand removing something off the table while the left hand is adding them to the other end of the table. IT IS NOT GIVING BACK TO THE SHAREHOLDERS AS THEY CLAIM.
        I see it for what it is, not quite a scam but darn close.
        They did say in their response that there is absolutely no responsibility to buyback if they can find a better place to spend their money outside of either a divvy or a buyback. I feel there will be another reward coming and the buyback will be used to cover those shares.

        You can believe what you want but keep your posts coming because I have found when I do opposite of your pumping I do quite well.

        BTW write and ask them and see if you don't get an off the wall response.

 
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