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To: fedhead who wrote (12491)7/1/2002 10:55:58 PM
From: Bill Harmond  Read Replies (1) | Respond to of 57684
 
Could. Though there seems to be open discussion on the topic.

Check this out. We don't even need terrorists! We're digging our own grave.

reuters.com



To: fedhead who wrote (12491)7/2/2002 12:16:58 AM
From: techanalyst1  Read Replies (1) | Respond to of 57684
 
Not to mention what gets reported as earnings.

Check out what companies would have reported if they hadn't had option exercises included in accounting for the last few years.

It's in their annual reports and you can see them in print at the SEC site.

Take merq for example..... instead of reporting earnings of 60 cents they would have reported a loss of a buck last year. Brcm would have reported nearly 13 bucks per share more than they did in LOSSES.

They aren't alone.... if we look at earnings without those benefits, we could indeed have far to fall.

Don't even get me started on pension assumptions.

What effect would all this have on Silicon Valley and the way they compensate employees and the local economy there? I don't even want to think about it.

TA



To: fedhead who wrote (12491)7/2/2002 12:24:15 AM
From: Lizzie Tudor  Read Replies (2) | Respond to of 57684
 
and stock option expensing is another can of worms just like GAAP. Whenever you try to drive home the hard questions for proponents of stock option expensing, they don't have an answer. For example Larry Ellison exercised expiring options last year at 700mm, all in one swoop- these were granted 10 yrs ago when Oracle was trading as orcle. You wouldn't want to expense that kind of sum in one year... its actually compensation for the prior 10 years of work. So what to do, post option expenses to earnings in arrears? I'm tired of regulations that can't reasonably be enforced.
L



To: fedhead who wrote (12491)7/2/2002 12:44:47 PM
From: Suresh  Respond to of 57684
 
I really hope they do.... an expense is an expense.. Just let the companies report it as an expense and the share holder/investor decide decide how much the company is worth. Why should the share holders be given a false sense of profit picture ? If reporting the expense is a big problem just get rid of options and increase the pay to attract talent.

-Suresh