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Technology Stocks : Intel Corporation (INTC)
INTC 36.20+0.1%Dec 26 9:30 AM EST

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To: rkral who wrote (178319)6/16/2004 1:12:51 PM
From: Elmer Phud  Read Replies (1) of 186894
 
Ron -

It's only logical that if the former has value, ESOs do too. Not exactly the same value, but not $0 either.

The argument has been when to expense the value. As no loss is suffered at grant I don't see any need to expense them at that time. I gave an example of a proposed bonus where an employee would receive a sum if performance goals were met. That no doubt has value to the employee but has the company suffered at loss at the time the bonus was promised? I can't see a loss and I can't see a difference.

Haven't you ever wondered why employees don't refuse the options .. because they are without value?

They are of some value to the employee. The discussion is if there is a corresponding loss to the company that needs to be expensed immediately.
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