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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Berney who wrote (26450)9/21/1999 1:33:00 AM
From: Jacob Snyder  Read Replies (1) | Respond to of 99985
 
re: options:

Options are how growth companies get and hold on to valuable employees. Companies get this benefit from the options they give, from the time they grant the options, through the time the options are exercised. It is a form of compensation, often more important than salary or other benefits. So, companies get the benefit now, but the cost doesn't show up till later. It is a way of deferring expenses. Saying that it shouldn't be expensed until the options are exercised is exactly the same as saying that pensions shouldn't be funded until the employee retires. After all, the costs aren't incurred until then, right? What's the difference? There isn't any. A big option overhang is exactly the same as a big unfunded pension liability.



To: Berney who wrote (26450)9/21/1999 9:58:00 AM
From: Les H  Read Replies (3) | Respond to of 99985
 
re: options

Impact of options on tech cos, changes in allowability of options

wired.com

wired.com

Companies giving stock options to student marketing reps

wired.com

Dot.com deadbeats (somewhat related)

thestandard.com



To: Berney who wrote (26450)9/21/1999 12:33:00 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 99985
 
Berney I would like to make it strict and simple. Financial statements submited to the public should obey to the same rules as those submited to Federal Government Agencies.

Penalties should be the same, and I would be more than happy to see several CEO, CFO ect. go to jail and any ill recieved compensation from stock option to go back to the shareholders, including of those employees which gained on teh expense of share holder.

A criminal is a criminal and it should not differenciate as the system does it now.

If I submit to an FDIC insured entity misleading financial statements to raise capital I go to jail for up to 30 years.

See this decission of the US Supreme Court on this case bway.net

Decision - The principal issue before us is whether materiality of falsehood is an element of the crime of knowingly making a false statement to a federally insured bank, 18 U.S.C. § 1014. We hold that it is not.

supct.law.cornell.edu

Haim