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Technology Stocks : Intel Corporation (INTC)
INTC 36.850.0%10:43 AM EST

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To: Lizzie Tudor who wrote (174686)5/21/2003 9:14:23 PM
From: GVTucker  Read Replies (2) of 186894
 
Lizzie, RE: Not exactly an outright damning statement against options, imo. To me, this is alarmist just like when people here accuse Cisco and Intel of cooking the books when they don't expense options.

Expensing options has nothing to do whether you're for or against options as a compensation tool.

Greenspan is unambiguously for expensing stock options on the income statement.

As far as whether they are good or bad, that's best left up to the market. If options are the horrible thing that some (incorrectly, IMO) believe they are, then the market will punish the companies that reward stock options to its employees and stock options will fade from view. If awarding stock options to employees helps a company innovate and thrive, the market will reward those companies and the practice of awarding stock options will continue.

As far as the events of 1994 and options are concerned, there is no question in my mind (nor anyone else's, at least among the few of us that actually followed it closely then) that the sole reason that Congress intimidated the FASB into backing down on stock options expensing was pork, primarily Silicon Valley pork.
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