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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Exacctnt who wrote (71196)12/1/1999 1:09:00 AM
From: Simba  Respond to of 132070
 
Exacctnt:

I agree with you that EPS calcultation considering option expensing AND fully diluted share base is a double hit and is not fair to the company.

That is why I proposed the option 2, where the company does not reduce earning for the option gain by the employee BUT ALSO don't take the tax credit. In this case the EPS should still be calculated with the fully diluted shares with no adjustments for "future" phantom buybacks. This will still reduce EPS somewhat and I venture to guess more than the current "fully diluted calculations" by adjusting the denominator.

Anyway, thanks for your examples and clarity.

Regards,

Simba



To: Exacctnt who wrote (71196)12/1/1999 1:34:00 AM
From: Michael Bakunin  Read Replies (1) | Respond to of 132070
 
I'm not sure they shouldn't take a double hit. Options grants certainly smell like an expense to me. And share options create a contingent liability to issue shares in the future.

-mb


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