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| June 01, 2003 | COPYRIGHT 2003 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Financial Director)

In July 2001 Marconi watched its share price collapse, putting executive share options under water. So the board decided to put forward a proposal to reprice the options, which looked like moving the goalposts to some investors. Then, one shareholder stood up at the AGM and said, "Isn't it a myth that share options work to incentivise people? Otherwise, we wouldn't be in this mess ..."

Few corporate collapses have been as spectacular as that of Marconi.

The company's shares fell from a high of GBP12.50 to a low of 2p. But if the law of rebounds - what goes down must come up - works in Marconi's case following its ...

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