I can think of no better incentive placing company officers in the same boat as shareholders than making salaries low as they are at RFMD and letting them sell stock options as part of their income! Wow! the higher that share price goes, the more money these guys make! Go back to earlier in the year, these guys were selling at 2.00+/- a share frequently! Are you telling me they don't have a VESTED interest in seeing that share price go up? What are we dealing with here? A bunch of novist hack investors placing what looks like, smells like, and there fore must be, dung on a message board! Wake up and smell the coffee! This compenstaion package has these officers by the short hairs and other companies/industries should follow this concept! Basically RFMD is saying, the company does well and the stock goes up! You are rewarded. The stock goes down and it is money out of YOUR POCKET Mr and Ms's company offcier! Unbelievable!
One more thing here, I don't hear any whining going on when insiders had AUTOMATIC sales last fall 2008 in the 2 dollar plus range! LOL ! Come on! Wait, I get it, you guys are all short and want to pile drive this thing down again! Not going to happen! look at the news, look at the industry, look at those they supply, and look at the regions of the world RFMD products serve! Not to mention new technology and opportunities!
1. Just calling assholes assholes. 2. I have never shorted 1 share and never intend to. 3. Shorts are low but they are up the pecking order from welfare executives who feed off shareholders because of their own failures to earn enough money to pay themselves legitimately.
boar: you make some good points about aligning executives with shareholder interest, but that is not how it has played out with Rfmd because the Board simply lowers the base price of the next infusion of stock bonuses and grants, and the execs get to average down all new grants and bonuses, so, if one were cynical, sandbagging the share price works for the execs.
Would that it were true that execs suffer as much as shareholders when the stock goes down. They don't. They got new bonuses last year based on $3.70-ish per share after the stock fell from $7 to mid-$3. So, the execs win on future stock grants even if shareholders have suffered holding the bag at a much higher price.
The exec selling therefore has a much better chance of turning a profit than the shareholder of Rfmd because the average of the shareprice has been worked down for the execs.
So the interests of mgmt are only partially aligned with shareholder interests.
Tres Partes, good point however note, if RFMD had dropped from 7 to say the mid 3's and they were given options at 7, this would be robbery! Even if they had to wait a couple years to sell! The fact that their options were priced at the current market means they would benefit as much as existing shareholders if they manage to get the share price up! I have to tell you, I have had certain stock options before that I could not sell! Not until I left the company! Even then, I had to believe the value of those shares based on what my former company said they were! Not too long after I left, that company got bought out by Dean Witter and subsequently by JPM ! If I could have held those stocks/shares, I would be sipping brandy slurppies on some ocean beach somewhere! I couldn't! I suspect the holding period for the stock options these guys are getting have a no earlier than and no later than expiration date or they lose them. Sell or lose them? What would you do? I mean come on, more than half of these sales that occured recently are at levels lower than todays price! So who won? Not the insider! He sold for less than he could have today and, he gets to pay INCOME taxes on 100% of that INCOME !
Officers and C level execs of companies usually only have small windows of opportunity to sell their stock - it has to be planned and filed with the SEC. They can't just pull the trigger on options anytime they want.
Middle managers and others granted smaller portions are not generally in those windows because they don't have the quantities the big guys have and therefore can't really spook the market.