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Politics : Ask Michael Burke

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To: Earlie who wrote (51763)3/13/1999 2:54:00 PM
From: gbh  Read Replies (2) of 132070
 
Earlie, re: the MSFT Employee Options program. In their earnings releases MSFT does talk about a "fair" expensing of these options being made IF they had purchased call options to cover the option grants, at the time of grant. And they go as far to break down basic income statement if this had been done. It doesn't look significantly different than the "generally accepted" statement.

The point is, if this tax loophole is closed, wouldn't MSFT simply buy the calls at the time of grant, to expense these options at time of grant, and let the market, in fact pay its employees, if and when the stock rises.

And I guess I don't see how this is dilutive one way or the other.

Gary
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