Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.82

+1.5%

Dec 19 9:30 AM EST

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To: wanna_bmw who wrote (165334)	5/22/2002 11:30:11 PM
From: ptanner	Read Replies (1) of 186894

wbmw, re: expensing options From article: If all stock option grants were expensed, that would count against profits and constrain the ability of Intel to reward staff, executives said. "If you added a lot of expense into the structure, we'd likely have to reduce the program," said Andy Bryant, Intel's chief financial officer, in response to the same question. I thought the proposed changes would only affect the income statement and would have no affect on actual cash flow from the company? Or are they also proposing modifications to the tax code? The valuation process would need some additional guidance as in comparing MSFT, INTC and AMD there was a wide range of assumptions. Intel had the clearest presentation (IMHO) and also the lowest options program cost as a percentage of net income (forgot and lost the details but the data is all in the annual reports). The big "cost" of the options programs is the share dilution. However, an effective options program might only "cost" 10% dilution but yield considerably more than 10% additional growth from the increased incentives. Intel's proposal for only the top five executives is interesting, however. I wonder what % the top five got at Intel and other companies. I can think of at least one company (AMD) that is probably far more unbalanced in its compensation of top executives. -PT

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