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

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To: rkral who wrote (777)8/15/2005 1:02:08 PM
From: Don LloydRead Replies (1) of 786
 
Ron,

I would expense the stock on the date "given", with the FMV on that date, and even if not purchased on the open market.

Compensation is about the value an employee receives ... at the time it occurs ... in exchange for services rendered. Whether stock is purchased on the open market or fresh off the printing press is irrelevant.


You are the one talking about services rendered. But that's OK.

If the company caters a dinner for the shareholders, that's an expense.

If it buys back replacements for granted stock from the market, that's also really an expense and compensation for the SHAREHOLDERS.

It was the SHAREHOLDERS, not the company itself, who sacrificed to make the grants in the first place.

Regards, Don
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