Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: IceShark who wrote (160540)	9/9/2000 1:12:33 AM
From: Meathead	Read Replies (2) \| Respond to of 176388

If you want to give your kids a hundred bucks for getting straight A's in school, why would it be more ethical to give it to them out of this weeks paycheck rather than the money you have saved up in the bank? Ice. A lot of financial types share your opinion about reporting options as compensation. It does not matter much to me because if you understand how to interpret a balance sheet and a 10k, you can easily understand the flow of funds. However, 90k/year would not entice me to sign on these days <gg>. But your point is a good analogy but in Dell's case however, I think realisticly it would be more like putting 10k of your salary into options rather than 50k. Re: What I care about is everyone knows that is what is going on You can forget about that. The information is there, but most will never be able to comprehend it. Case in point: On the game show GREED, a question was asked, "how many 1000's make up a million? Two UCLA college students had a crack at it. One answered that 100 thousands make up a million. The capitan wisely overruled the answer as being incorrect and said that 10,000 thousands make up a million. Anyway, I have not seen it mathematically shown how employee stock options hurt shareholders in any way whatsoever. Shareholder equity on the B/S and stock valuation are totally disconnected. Valuation is largely based on earnings and revenue growth. If options were paid for with current earnings rather than retained earnings, it would effect PE ratios and ultimately the stock price. But, why should a company be forced to pay for options with current earnings rather than retained? Both methods have exactly the same impact on shareholder equity. MEATHEAD