Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: John Koligman who wrote (170952)	9/24/2002 10:10:08 PM
From: mepci	Read Replies (1) of 176387

This whole issue of taxing the options is barking on the wrong tree. It is not really fair to tax the employees on value they may get in future. The real way of treating options is by creating option plans similar to pension plans. This will limit the cost of options to the company to what amount of money the shareholders are willing to part with for this plan. Once a kitty is established, the option plan should buy insurance against any losses to the plan due to appreciation in the price of the stock. This insurance doesn't exist now, but our insurance companies and brokerages will certainly come up with plans when there is a need. The problem for Dell was, they took one-sided insurance (only for stock going up). That wasn't a prudent investment decision. Once they made such a major mistake, the loss should have gone directly against earnings. By not doing that they lost even the opportunity to get tax deduction for the loss. Overall results decrease in net worth and cashflow. This mistake will haunt them for a few years. Institutions will dump Dell when they can find a better parking spot.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next