Duke, RE: However, IN NO EVENT is the issuance an "expense" to the company, IT does not cost the company a dime. It may be a dilution to the shareholders, it may 'cost' the shareholders, but it does not cost the company a penny. In fact, it allows compensation of the employee SAVING PRECIOUS CASH!!!
I guess we disagree as to what costs the company, because I sure as heck see it as an expense. Just because you put "IN NO EVENT" in all caps does not make it any more true. Shareholders own the company. If it is a cost to shareholders, it is a cost to the company.
There are many, many ways to save cash. Wonderful. That is also beside the point. Guess what? If the company gives away stock instead of options, that saves precious cash, too, and under your definition, it doesn't "cost" the company anything. And yet, that is indeed expensed. Because it is indeed a cost to the company.
If it costs the company nothing, why don't they give options away to everyone? Give a hundred share option with the purchase of every computer. Heck it doesn't cost the company anything, right?
Yes, I know that's not what you meant. But the company is giving away something of value. That is unquestionable. Just because that value may change in the future does not change the fact that there is value there. |
