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To: Don Lloyd who wrote (5608)7/25/2000 11:45:07 AM
From: LLCF  Read Replies (1) | Respond to of 436258
 
<If a company is able to attract employees at a lower salary cost because of its location in a clear air, blue sky environment, would you adjust the salary expense entries for this? Only if it has to run an electric blue sky generator in the parking lot. -g->

Unrelated to the topic at hand. Options are very easy to price in dollar terms.

<In the case of the options, the employee values the option received as greater than any alternative use of the salary foregone.>

Makes no sense... I'm sure there is a salary point at which he is indifferent... what's the point?

<btw - Have you seen 'America's Great Depression', by M.N. Rothbard? It has a very detailed breakdown of the components of the money supply over the 1921-1929 period at six month intervals.>

Sounds interesting... can you elaborate?

DAK



To: Don Lloyd who wrote (5608)7/25/2000 6:18:00 PM
From: Mike M2  Read Replies (2) | Respond to of 436258
 
Don, I have the book. The use of stock options is out of control IMO. It incents management to take a short term view at the expense of the future. Debt financed buybacks will haunt many companies when the next recession comes. Mike