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

To: Don Lloyd who wrote (82977)	8/15/2000 2:46:39 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

Don, >> I do think the cash-generating potential is significantly less without the option plan<< I hate to rehash old ground because we clearly aren't going to agree, but the cash that is saved by granting options (plus some return on it) is generally offset (on average) by the repurchases that are done to prevent dilution when they are exercised. (give or take complications) No matter how you slice it, as a shareholder I am giving up a percentage of my business when I grant options. That percentage has value regardless of whether it is in the form of actual stock whose value is clear or options whose ultimate value is dependent on a host of outcomes. If you owned a 1 million dollar business and paid me 500K in options on your ownership I would gladly take that over 400K in cash. And at the end of that story no matter what you were reporting in earnings you would be out 100K in wealth (on average). Wayne