http://betaalgyan.blogspot.com/2008/08/two-wrongs-dont-make-it-right.html
Betaal and Vikram had not met in a while. Both were traveling and taking care of independent stuff.
So after a few days when the met, Betaal was in a quizzing mood.
Betaal: Vicky ! How have you been ?
Vikram: Great ! Glad to be back together.
Betaal: I ve a puzzle for you to solve.
He goes on !
"I
hired two young men in 2006. From the same company. Same grade. Hired
both of them on the same date. For this puzzle lets name them Mahesh
and Suresh.
hired two young men in 2006. From the same company. Same grade. Hired
both of them on the same date. For this puzzle lets name them Mahesh
and Suresh.
Both
of them were supposed to join on 11 Nov 2006. And because they could
not be relieved from their previous company, they had to postpone the
joining dates to 25th December of 2006.
of them were supposed to join on 11 Nov 2006. And because they could
not be relieved from their previous company, they had to postpone the
joining dates to 25th December of 2006.
As
you we know we do give employees stock option of our company on joining
which are priced by the board after the joining date of the company.
Both of them had same number of stock options at joining.
you we know we do give employees stock option of our company on joining
which are priced by the board after the joining date of the company.
Both of them had same number of stock options at joining.
Board
meeting happened on 19th Nov by which time both Mahesh and Suresh did
not intimate their delay in joining. So, all there options were priced
at USD 19 (the value on that day).
meeting happened on 19th Nov by which time both Mahesh and Suresh did
not intimate their delay in joining. So, all there options were priced
at USD 19 (the value on that day).
But
they joined late. And technically the pricing now is before their
joining date. The next board meeting happened on 27th Feb 2007.
they joined late. And technically the pricing now is before their
joining date. The next board meeting happened on 27th Feb 2007.
The price of the stock was 27 USD.
HR
process figured out the illegal option pricing done for Suresh. And
made the original stock price void and made it 27 USD per share.
process figured out the illegal option pricing done for Suresh. And
made the original stock price void and made it 27 USD per share.
For
some reason, it missed Mahesh, who had the exact same situation. Now,
after almost 2 years, Suresh demands the difference between 19 USD and
27 USD. What should we do ?
Stock Admin suggests - do him a CAP award for the amount.
HR
suggests - Roll back Mahesh's pricing now. But Mahesh stocks now have
started vesting and he has already sold some as they are in gain.
suggests - Roll back Mahesh's pricing now. But Mahesh stocks now have
started vesting and he has already sold some as they are in gain.
What would you do Vicky ? "
It sounded complex. Vikram thinks about it for a while.
Vikram: I
guess we need to convince Suresh that what is done for him is right
although he is set to lose money. Its going to be difficult. From his
prospective its not fair. From a system prospective, it is not fair
because of a mistake. Some wrong doing on someone's part.
guess we need to convince Suresh that what is done for him is right
although he is set to lose money. Its going to be difficult. From his
prospective its not fair. From a system prospective, it is not fair
because of a mistake. Some wrong doing on someone's part.
Doing another wrong thing would not make it right.
Betaal smiled and got up to walk to his cabin.
While going away he said - "Thats the right thing to do Vicky ! Thats the right thing.
While going away he said - "Thats the right thing to do Vicky ! Thats the right thing.
However,
if Suresh is someone you want to bet on, if Suresh is someone worth
fighting for, I would give him the CAP and make it up for him. I would do the wrong thing if he is worth it"
if Suresh is someone you want to bet on, if Suresh is someone worth
fighting for, I would give him the CAP and make it up for him. I would do the wrong thing if he is worth it"
