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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (5638)	2/18/2002 12:28:54 PM
From: MulhollandDrive	Respond to of 33421

>>I do think that this is a self correcting problem. Shareholders are going to insist that the accounting becomes a bit more transparent and will reward the company with lower stock prices if they don't get it. << Based on what I have read, it is the unbalanced treatment of options currently that is the problem. I think that is most likely the underlying motivation (extremely liberal) issuance of options. When the stock prices were rising and there was no "penalty" for creating the options as a means of compensation and the subsequent favorable tax write off, abuses occurred. If options were issued to employees as "motivation" and the stock price plummets, just create more, thus more dilution for shareholders. Options have become the ultimate in clownbux, imo. Considering the political climate now I think a revision of the FASB rules for options is highly probable. In other words, equal treatment on both sides of the ledger. If you take the deduction, you take the expense.