CTC,
But if the cost is shouldered by the Ask Burke Thread, for example, as well as other LEAPS put buyers, why should the long investors care? Also, I disagree that the economic cost is unsupportable. For example, MSFT has about 40BB in outstanding options liability at present (I may be wrong about the exact number, but it should be in the ballpark). It was about 25BB a year back. Meanwhile, MSFT market cap has gone up some 150BB. Assuming that ESOPs are indeed conducive to better employee performance (it is to me and my wife, for sure, and very likely for our friends - and no, we do not work for MSFT but nevertheless have received options from our respective employers) and that leads to greater profitability and increased shareholder equity, I find that a 10% economic cost is acceptable.
Again, I reiterate that I have no comments about the accounting issue, which I do not quite understand anyway.
-BGR. |
