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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.01-0.3%Nov 14 9:30 AM EST

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To: David E. Taylor who wrote (119765)6/3/2002 12:53:15 PM
From: hueyone  Read Replies (1) of 152472
 
And if employee stock options were to be banished as part of employee compensation, then I guess shareholders would be bearing a similar cost due to the increased salaries/bonuses etc. that would needed to retain key employees in a competitive environment.

I am not aware of any proposals to banish stock options. The McCain/Levin bill for example, simply proposes that companies treat and report stock option expense to shareholders in the same manner they report to it the IRS. Most companies due indeed report stock options as an expense to the IRS when figuring their taxes. And Clarke Hare, I am wondering how the IRS is letting all these companies get away with "double counting" of stock option expense.

If the Levin/McCain bill were passed, I doubt outside shareholders would be bearing a similar employee expense as to what they are now. It is precisely because of the stealth nature of these payments to employees, payment that go unreported, that we outside shareholders end up paying absurd amounts of compensation to people working for these companies. If companies were required to come clean and report to shareholders this expense in the same manner as they reported to the IRS, this enormous stealth compensation going to insiders would abate and there would be more profits for outside shareholders.

Best, Huey
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