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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs

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To: Don Lloyd who wrote (682)8/1/2004 6:47:49 PM
From: rkralRead Replies (1) of 786
 
Don, re "Doesn't it make anyone the least bit nervous to claim to be measuring the business performance of a company by a means that depends on the largely arbitrary and capricious trajectory of the stock price? "

A little, but no more so than realizing that employees pocket more when "the largely arbitrary and capricious trajectory of the stock price" is upward. At least some amount would be expensed.

But the connection to the stock price is avoided by the FASB method of determining the expense at the time of the grant. The amount is fixed, no matter the price activity from that point forward. The only modification AFAIK is due to forfeiture.

Ron
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