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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: GVTucker who wrote (165361)5/24/2002 7:34:22 AM
From: Amy J  Read Replies (1) of 186894
 
Hi GV, RE: "There's no reason to change that item."

Windsock is correct here - (if expensed, then there's a risk that option grants could be considered payment to an employee, and thus, an employee could be liable to pay taxes well before the stock is exercised.) This is worse than what happened to the CSCO employees that had options they exercised only to owe taxes on stocks that went under water. But at least CSCO holders had the option to sell what they exercised in order to pay the tax. Under AG's proposals, there is the risk that receiving stock options could become a pure-liability situation to the employee. These are potentially dangerous times for optionees, thus investors.

Regards,
Amy J
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