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

To: Exacctnt who wrote (71199)	12/1/1999 11:42:00 AM
From: Michael Bakunin	Read Replies (1) \| Respond to of 132070

Options grants smell like an expense, but not like that expense. Olfaction is imprecise, but I'd come down on the side of expensing the fair market value of the options granted. In the absence of market-traded LEAPs approximating employee options, a Black-Scholes value estimate should suffice. This will reduce net income and tax liability, so the current break on exercise should be abolished. The details of inoculating against dilution, or not doing so, are left to management, not FASB. -mb