Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.35

-0.1%

10:35 AM EST

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To: Clarksterh who wrote (122020)	7/24/2002 2:23:13 PM
From: A.L. Reagan	Read Replies (1) of 152472

So there would be no taking money back. Assuming that the credit offsetting the Black-Scholes debit to compensation expense goes immediately to paid-in capital rather than some liability account. Companies, especially those with poor cash flows, will be incentivized to maximize the option value in order to minimize their taxes and thus maximize their cash flow. Don't get it. There's already a tax deduction and nobody's talking about changing the tax code on deductibility. So there is nothing about expensing options per books that should change tax planning. As far as deliberately increasing volatility, that seems counter-intuitive - a more volatile stock will have a higher expense under Black-Scholes ceteris paribus, and only real idiots would go out of their way to increase reported compensation expense.

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