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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Don Lloyd who wrote (173039)6/16/2002 1:22:21 AM
From: KeepItSimple  Read Replies (1) of 436258
 
You are a fucking nutcase. Why are you wasting that much energy to defend public company fat-cats?

Look, the bottom line is that execs at high tech companies have been raping shareholders for years by hiding the cost of options in footnotes, by buying back shares, or just hoping nobody would notice the number of outstanding shares tick up. Until recently, the shareholders didn't even know it was happening. THE NEW LEGISLATION WILL MAKE IT PLAIN AS DAY HOW BADLY SHAREHOLDERS ARE BEING SCREWED.

By not expensing options, companies can hide this assfucking of the shareholders.

Look, the game is up. Clearly you are one of the afore-mentioned execs and are just trying to save your skin.

Your argument holds about as much water as Arthur Andersen saying they didn't intend to shred tons of documents to hide evidence, but rather they were just practicing their document retention policy at a coincidental time.

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There is no way to say in general whether option grant compensation helps or hurts shareholders, as the terms could be extreme in either direction. Plus there is no way to predict the price of the stock and how valuable the retained employees actually are. However, expensing options is always a form of double counting the negative impact on shareholders of dilution.
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