Bastiat Capital

speaking out

Wednesday, October 11, 2006

How Stock Options Rob Shareholders

Michael Brush of MSN Money discussed stock options using Albert Meyer as a source. The article points out the following amazing fact:

From 1998 to 2005, Broadcom generated $725 million in free cash flow (essentially the cash thrown off by the company's operations, minus capital expenditures such as the cost of office buildings). But selling stock to options holders -- who have to buy stock at a strike price when they exercise options -- brought in $1.1 billion.

The full article can be read HERE.