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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (14044)	2/28/2002 7:55:54 AM
From: Bob Rudd	Read Replies (1) \| Respond to of 78666

Options for the CEO makes sense...rewards from growth in value of stock matches CEO's enterprise wide responsibilities. But the accounting rules should be changed so the economic value of those options is reflected as compensation expense on the income statement. With such a change the results would be more comparable to a company that chose to compensate it's CEO strictly in cash or with a greater or lesser portion of options. Would generally agree with Jim Clark and others that repricing options is a bad idea...with possible exception of share price hits totally unrelated to management performance [911 events, earthquake], but these would be very rare since dealing with risks is also a management responsibility.