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Technology Stocks : Intel Corporation (INTC)
INTC 46.96-2.8%Jan 16 9:30 AM EST

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To: Michael Bakunin who wrote (97219)1/23/2000 1:10:00 AM
From: Process Boy  Read Replies (1) of 186894
 
Micheal - ref: From you link:

What Happens Now?

The delayed effective date and two-stage transition approach have caused many who oppose the proposed change in accounting to continue to hope the Board's tentative conclusions are modified before expense recognition provisions become effective. These commentators would be pleased to see a final standard that incorporates only the proposed disclosures, and many will undoubtedly lobby the Board for this outcome.

Meanwhile, a large number of employers have announced their intentions to reduce or eliminate stock option plans in light of the Board's proposal. The Wall Street Journal recently reported results of a survey of 500 start-up companies in which 90% of the respondents indicated that a requirement to deduct stock-option values from profits would prompt them to stop issuing options to most employees other than top executives. Consultants believe stock option plans provided to top executives are less likely to be eliminated because the performance of these executives is most influenced by stock-based compensation. The Board responds to these assertions by arguing that if stock options provide real economic benefits, companies should reduce stock-option programs only if the cost of providing this kind of compensation exceeds those benefits. Further, unless companies measure and report the cost of options, they can not evaluate the efficacy of stock option plans.

Oct 1993


This went far in six+ years, didn't it? The amount of grass roots groundswell of companies not granting stock options is overwhelming.

And Warren Buffett has absolutely no holdings in companies that grant stock options.

PB



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