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September 09, 2005

Comments

Robert Scoble

>How do you motivate employees with stock when there is no perceived upside potential?

Actually, I've had stock options at three different times in my career. All of them are now worthless.

My Microsoft stock isn't gonna make me rich, but is already paying me more than any of those options did.

Options are a lottery ticket. Only 1/300 actually pay out (actually, Hummer Winblad told me they turned down 9,000 business plans in one year, so maybe the chances are even lower than that).

Also, dirty little secret. Microsoft isn't doing as bad in the recruitment action as you might think.

I was talking with the recruiters last night. Three of them are former Google employees.

Did you know that 30% of Microsoft employees who leave for Google come back to Microsoft?

Bill G

Scoble - 30% come back? Great, 70% don't.

You can deny it all you want, but stock options DO matter. MSFT hasn't moved one iota in years. Growth has become so challenging that MS has no choice but to declare a dividend. When a dividend is the best return you can provide a shareholder, it is time to declare yourself an old-line business.

By contrast, Google and Yahoo have mojo/buzz/juice. Walk around either of those companies and you will *feel* it - the pulse of both of those companies is palpable. Walk around MSN - the feeling is one of lethargy.

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