rt2525 Posted December 3, 2008 Share Posted December 3, 2008 Just putting this out there. IF and only if Ford were to come back looking for more concessions How about a tradeoff, I'd be willing to give up $5 /Hr. for 2 common Ford shares/Hr. Saves the company money in the short term and I/We pick up a vested interest in the company.Should the company do as well as Mullaly thinks it will,we all win. Kind of like stock options for the little guy! Quote Link to comment Share on other sites More sharing options...
one2gamble Posted December 3, 2008 Share Posted December 3, 2008 where do the extra shares come from? Quote Link to comment Share on other sites More sharing options...
battyr Posted December 3, 2008 Share Posted December 3, 2008 Here's the deal, you get your 2 shares. But any new hires don't. What happens when the shares go up in value. If the value of the shares rise, do you take a bigger pay cut? You'll profit on shares already owned. Quote Link to comment Share on other sites More sharing options...
battyr Posted December 3, 2008 Share Posted December 3, 2008 where do the extra shares come from? Same place that Mulallys stock options come from. Quote Link to comment Share on other sites More sharing options...
Noah Harbinger Posted December 3, 2008 Share Posted December 3, 2008 (edited) Same place that Mulallys stock options come from. Options are not the same as Shares. Options merely lock in a price -- they're the "right to buy". If you offer a stock option at the current trading price, it's nearly free (and thus the company doesn't have to book much cost). Edited December 3, 2008 by Noah Harbinger Quote Link to comment Share on other sites More sharing options...
battyr Posted December 3, 2008 Share Posted December 3, 2008 Options are not the same as Shares. Options merely lock in a price -- they're the "right to buy". If you offer a stock option at the current trading price, it's nearly free (and thus the company doesn't have to book much cost). A company can issue as many shares as they want. When an employee exercise an option, the writer of the option may have to provide the shares. If the share price does not exceed the strike price of the option, then the writer owes nothing. If the share price is higher then shares must be provided. Options are very highly leveraged. That means that often an option expires and the holder gets nothing. But if the share price exceed the strike price by a only $1 before they expire, then the option holder would benefit by $100 per option. When a company issues new shares, they can dilute the value of all the shares. If the company gets something in exchange for the shares, like cash or wage savings, then no problem. If not, then the average value of each share drops. This can lead to a law suit from the share holders. Quote Link to comment Share on other sites More sharing options...
battyr Posted December 3, 2008 Share Posted December 3, 2008 Also note that the company can write new options, or they can purchase options on the open markets. If they write the option, then the options cost them nothing, but they are liable to provide the shares. If they purchase the options, then they have to pay for the options at the market price, but someone else is liable to provide the shares. Purchasing the options is much less risky, and protects share prices. But options on the open market usually expire after a few months. The company can write there own options to expire over years, which is a benefit to encourage management performance. Quote Link to comment Share on other sites More sharing options...
rt2525 Posted December 3, 2008 Author Share Posted December 3, 2008 Just putting this out there.IF and only if Ford were to come back looking for more concessions How about a tradeoff, I'd be willing to give up $5 /Hr. for 2 common Ford shares/Hr. Saves the company money in the short term and I/We pick up a vested interest in the company.Should the company do as well as Mullaly thinks it will,we all win. Kind of like stock options for the little guy! Okay, maybe I should have asked as a poll. If it were possible,how many would go for it? Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted December 3, 2008 Share Posted December 3, 2008 You might get a more receptive response in the Employee Forums. Quote Link to comment Share on other sites More sharing options...
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