Matters Financial

14 July 2003


Microsoft Ends Employee Options
Microsoft announced last week that it would discontinue the practice of awarding employees stock options. Instead, future equity transfers would be done as straightforward grants of shares. In addition, existing options would be expensed and those that are far from their strike price would be bought back. A wise decision that gets rid of a good idea gone bad. Click here to read more.

Bank of England Cuts Rates
The Bank of England cut its interest rate to the lowest level Britain has seen in 48 years. After a 0.25% cut to 3.25%, the rate still seems outrageously high, but part of that is the price Britons pay to stay out of the euro and some of it is the fact that the UK's economy hasn't hit the doldrums in quite the way Germany or Japan's have. The fact that leading "hawk" Mervyn King chaired his first meeting as Governor of the Bank of England when this was announced is the key to understanding future moves by the BOE. Click here to read more.

The Strange Death of the MBA
A report in the Financial Times last week bemoaned the "crisis" among business schools. It used to be that an MBA was a great way to ride out a recession and return to the labor market with shiny new credentials that could enhance one's paycheck. With three years' of economic difficulty, there are many new MBAs who are unable to find work than ever before. The result is a decline in B-school applications, and many who would not have been admitted before are finding that they are welcome to pay $30,000 a year after all. Click here for our view.