SI
SI
discoversearch

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

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: hueyone who wrote (125875)12/5/2002 7:37:00 PM
From: Wyätt Gwyön  Read Replies (1) of 152472
 
good points, huey. indeed, the authors employ circular thinking. the problem i have with expensing at exercise is that it's not very helpful to investors. exercise cost to the company--an opportunity cost, really (i.e., an after-the-fact debate over would they or wouldn't they have been better off by offering cash compensation instead of options)--reflects the past; but investors are interested in the future. therefore, we need an indication of what the co's current compensation to employees is; not what it was in the past.

the only way to get an idea of the ongoing expense structure of the co is not to look at the opportunity cost of exercises after the fact, but rather to look at the expenses in the hear and now every time options are granted.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext