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Technology Stocks : Intel Corporation (INTC)
INTC 36.78+2.7%Nov 26 3:59 PM EST

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To: Amy J who wrote (174352)5/5/2003 10:33:46 AM
From: Tushar Patel  Read Replies (1) of 186894
 
Isn't that what startups try to do?

If a startup had to pay cash all the way, maybe they wouldn't be as productive as the startup with the options, or may they wouldn't do it in the USA. Lots of things get done around here on the basis of options. More productive


But conventional options are only one form of non cash compensation. Stock grants, deferred cash payments and other alternatives exist (and in fact may be more efficient in some cases) but these forms need to be expensed. Why not have a level playing field by requiring all forms including stock options be expensed? Then, the startups and companies can decide what compensation mechanism makes most sense for them.
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