Letters: let's hear it for Nvidia stock options

Cleaning up, good for the engineers

Our criticism of Nvidia's plan to convert employee share options into stock (Nvidia turns water into wine) is not universally shared. Here are two contrarian opinions.

"So when Nvidia is talking of 'employees' it really means a few senior managers who we guess are holding the vast majority of shares options. "

That may be technically the case, and may even be the real motivation, but while the executive staff holds the majority of options, the minority held by the engineering staff are quite certainly significant to _them_ on a per capita basis. When you're not wealthy, tens of thousands of $$$ in share means quite a lot.

Joe Kraska
San Diego CA

No offense Drew, but I think you missed the point entirely. Nvidia's decision to issue stock to employees, especially high-level employees, marks a turning point in Nvidia's management strategy. Frankly I'm surprised it took them this long, and they're lucky to have had such great success with their former scheme. It's a testament to Jen-Hsun Huang leading abilities, I assure you. I'm truly tired of seeing corporations dole out enormous salaries to idiots at high levels, who could care less how the company survives in the long run, who make short sited decisions that undermine the workings of a free market system, and consequently put workers and investors at risk. It's the point America is trying to make with newer SEC regulations, "accountability." When high level management isn't financially strapped to the long run performance of a company, you end up with bureaucratic nonsense. Given the SEC's recent investigation of Nvidia, I see this move as a positive foot forward. This last year, the company suffered enormously for the misbehavior of a few high level individuals.

Why shouldn't Nvidia seek to clean things up? It clearly indicates to employees, investors, and the American people, we've learned our lesson, no more nonsense, no more Enron-like debacles, we mean to do business the new American way, by ending some of the shady practices that have endured for so long in corporate America. Personally, I salute the decision. Other companies would do better to learn from this companies past mistakes and adopt similar practices. Sincerely, Desmatic. ®

Sponsored: Driving business with continuous operational intelligence