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

To: Freedom Fighter who wrote (76405)	2/22/2000 9:10:00 PM
From: Don Lloyd	Read Replies (2) \| Respond to of 132070

Wayne - [[I think I can agree with your premise that an options plan can be mutually beneficial to both the company and the employees. I think where we run into trouble is on the issue of whether $1.00 of earnings as produced by an options granting company is equal to $1.00 of earnings as produced by a cash compensation company.]] Thanks. Trouble is an understatement. -g- My mind feels like a pretzel just trying to frame your issue in some form that I can think about. To prove that statement about my mind, let's change from employee options to a greeting card company that pays its employees in Xmas cards for their private use. If the company had to pay salaries in cash, it would be breakeven. Since it pays in Xmas cards, it suffers only the very low marginal cost of production of the cards and earns a substantial profit. It also presumably suffers a relatively small loss of potential revenue as its employees are no longer final consumers of its retail products. Is there any reason to discount its reported earnings due to its ability to make a voluntary non-cash exchange with its employees for their labor? Regards, Don