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To: IceShark who wrote (5633)	7/25/2000 12:41:43 PM
From: Ilaine	Read Replies (2) \| Respond to of 436258

The way I look at it, the employer should not get a tax deduction when it gives shareholders stock options in lieu of salary, as it is just a dilution of shareholder equity, and should be a tax-free event. However, as I understand it, and feel free to correct me if I am wrong, the employer DOES take a tax deduction when the employee exercises the option, so the corporation treats the transaction as if it were salary. It walks like a duck, call it salary.