America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: Joel Sternberg who wrote (2078)	3/3/1997 3:06:00 PM
From: LordDarley	of 13594

These stock sales are ridiculous to use as indicators. AOL pays low cash compensation. Option exercise is the way AOL pays cash compensation without taking an earnings charge. Virtually all companies do this. You issue the option at market (no charge) and you exercise at least 6 months later (no charge and no Section 16b liability). On top of that, the company gets a tax deduction for any profit the executive realizes on exercise. (For AOL, make that a tax loss carryforward (<:) Blame the accountants for this silly treatment. You will lose money if you consider this a valid indicator with this type of company. Also, if you review the SEC filings you will see the large equity positions that officers continue to have. And the Board will keep loading them up.

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