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Originally Posted by Charlatan
How is Jobs (or any other person who cashes in stock options) different from any other investor that cashes in their stocks?
Company executives, like Jobs, invest their time and effort into making the company a success. Their reward is that their options increase in value. All I did for my stocks was invest the money in them. When I sell them I expect to turn a profit.
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There is a huge difference when a CEO sells his stock the second he can and an investor.
#1 is the amount..... I seriously doubt you or any private investor just playing the market has 10,000,000 shares. THE COMPANY HAS TO PAY THE BUYBACK.... I don't care what company you are or who you are when you expect a company to pay $600 MILLION in a single day to buy back your stock you obviously aren't looking out for the best interest of the company.
#2 the institutional programs see the CEO, Director, executive selling that much stock they begin selling off....... thus it is not just 1 person but all of a sudden the stock starts taking a dump and the private investor who saw Apple jumping and bought at $65/share is now taking severe hits.
Will the stock go back up? Probably, but what does it say for the confidence of the CEO to turn around and sell every stock option he had the second he could?
Tells me he doesn't have much confidence in the company.
Again, you keep harping on just Jobs.... what about Enron, what about GM, Ford, Sears, Maytag or any other company out there doing this or has been doing this for some time and is now in financial straits, telling everyone it is the workers and the unions, and the government and whatever excuse they want to give but the truth?
That truth is, NO COMPANY can absorb those kinds of hits and expect to grow, and if they do grow it is because they have gotten rid of the bad apples, refuse to do this type of incentive and are working their asses off to correct their mistakes.
Anyone who believes a company can afford to do this is either insane, totally greed driven or truly doesn't know that this type of practice will destroy the company faster than any CEO made it.