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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 137.34+0.8%Feb 6 9:30 AM EST

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To: Wyätt Gwyön who wrote (127187)2/25/2003 10:58:35 PM
From: hueyone  Read Replies (2) of 152472
 
Nice post Darfot. I agree that a long of long term damage has been to our system by greedy CEOs. I also think requiring expensing stock options would be a huge step in the right direction towards getting us back on our feet.

this post has nothing to do with QCOM

Yes, despite asking Maurice for the details, I don't think we really have a very good understanding regarding stock option compensation for the for the top execs at QCOM. Of course I could research this, but I thought perhaps Maurice already had.

Instead, I did a little research tonight involving stock option expense for the entire company. Stock option expense for the entire company for the last five fiscal years per SFAS 123 (which measures share value at grant and then amortizes the expense over the vesting periods) totaled roughly 607 million. Reported GAAP earnings for the last five fiscal years, which don't include stock option expense, totaled roughly 712 million. So if QCOM reported all the expenses on their income statements, there wouldn't be much left at all for shareholders from the last five fiscal years.

However, I think QCOM is one of the companies that could do OK if stock options were expensed. They have a solid business model. I suspect they could curb stock options, manage for shareholder value and make a nice go of it in the long run.

Regards, Huey
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