Qualcomm Incorporated (QCOM) Message Board

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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: Wyätt Gwyön who wrote (125876)	12/6/2002 11:35:48 AM
From: carranza2	Read Replies (2) of 152472

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. The bear market has shown how slippery that approach can be, mucho. Having a balance sheet item for option liabilities on some sort of quarterly basis requires management to make judgments about the value of shares for as far into the future as the options are viable. How can management do such a thing if options can have a 3-5 year life? It is unrealistic to suggest that any set of managers should be held to such a high standard. What if a company knows, as I'm sure many in 1998 and 1999 did, that their stock is in bubble mode? Should they be required to project the value of the stock, and thus the cost of options, in a manner that reflects the inevitable bursting of a bubble? I would suggest so, but to actually do so is to invite shareholder litigation. In a perverse way, the entire options issue brings up incredibly interesting issues of corporate accounting, governance, and transparency.

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