Word: corp
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Dates: during 1960-1969
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...industry the most promising way to make and keep a fortune nowadays seems to be through stock options. They have become the major device to counteract the heavy (up to 91%) ordinary income taxes on company officers' pay. Some of the gains have been big: at Radio Corp. of America, President John Burns has a paper profit of $830,000 on his options for 20,000 shares of stock, while General Electric Co. Chairman Ralph Cordiner has a $1,262,260 paper profit on options exercised since 1957. But with this year's fall in the market...
...option is also one of the strongest cords to tie a man to a corporation. At General Motors Corp., key executives are given cash and stock bonuses, plus options to buy G.M. stock based on the amount of their bonuses. Few leave for other firms because if they do they must forfeit their options and must also give up a big part of their bonuses, which are paid out over a period of five years...
Actually, options in big or established companies are often less valuable for executives than those in small firms, simply because stocks in small, vigorous companies, with a small number of shares outstanding, often rise faster. For this reason, options, notably in electronics companies (e.g., Microwave Associates, Itek Corp.), are a cheap and sometimes most effective way to lure talented scientists from big corporations that pay higher salaries. Options have also helped turn scientists, who often care little about costs, into good managers. Since Massachusetts' transistor-making Transitron Corp. (TIME, Dec. 21) granted stock options to its scientific staffers last...
...four years of heavy losses, Underwood Corp., once the leader of the U.S. typewriter industry, needed help in a hurry. It came last fall from Italy's progress-minded Olivetti company, biggest European maker of typewriters and calculating machines; it purchased 34% of Underwood's stock for $8,700,000. When Underwood's President Frank Beane made the deal, he expected to keep running the company. But the late Adriano Olivetti and his successor Giuseppe Pero (TIME, March 21) had different ideas of the way to cure Underwood's troubles. Out went Beane and most...
Last week Olivetti further tightened its control of Underwood. The Olivetti-dominated Underwood board unanimously approved a plan for Underwood to trade more than $30 million worth of its common stock (1,200,000 shares) in exchange for Olivetti's U.S. subsidiary, Olivetti Corp. of America (1959 sales: $15 million). If stockholders approve, Olivetti will have 69% control of Underwood stock, and the number of Underwood shares outstanding will be doubled...