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Technology Stocks : Intel Corporation (INTC)
INTC 48.72+3.0%3:59 PM EST

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To: Saturn V who wrote (151323)12/6/2001 2:13:30 PM
From: GVTucker  Read Replies (1) of 186894
 
Saturn V, RE: The present accounting systems do not know how to handle the cost of Employee Stock Options. However to count all of the Stock repurchase as an expense as advocated by one extreme individual is a gross absurdity.

I would agree. And that is why in my post, I tried to separate the stock repurchase that could be considered as a return of capital to shareholders and the stock repurchase that could be considered as preventing any dilution as a result of employees exercising options.

Given that Intel is using options as part of its compensation package to employees, it makes sense to me to incorporate the cost of these options as a legitimate expense to Intel. It is a fact that issuing stock at below market prices does involve a cost to existing shareholders. I try to quantify that cost.
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