Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 111.10

-7.8%

Jan 20 3:59 PM EST

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To: Meathead who wrote (52213)	7/18/1998 7:28:00 PM
From: Chuzzlewit	Read Replies (2) of 176387

Meathead, I am not arguing that options are bad. I am arguing that the accounting for them stinks. These instruments have a material cost to shareholders, but, because of the peculiarities of GAAP these costs are hidden. In some cases the costs are extreme, and the costs associated with repricing options are obscene. One of the worst offenders in this category is SEG. The idea behind a stock option is great. Make the employee work for the shareholder. The problem is that the stock is not restricted, so the option is exercised and the stock immediately sold because the tax system encourages this. And then, if the price of the stock dumps the options are repriced. I have a better idea. Pay bonuses in cash based on performance criteria that make sense. TTFN, CTC

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