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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (1450)	7/10/2002 11:10:44 AM
From: Gottfried	Respond to of 25522

Brian, options should be expensed. Stocks would take a short term hit, but afterwards that argument would be laid to rest. G.

To: Proud_Infidel who wrote (1450)	7/10/2002 4:21:50 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 25522

Am I the only one?.......................... in Techland who believes that options should be expensed? The issue is how to expense them. Larry Ellison cashed out of 700mm in expiring options this last year. Those options were granted in 1991 when Oracle was on tentative footing. Despite the huge amount of the gain, I suspect most Oracle watchers would say its well worth it to compensate Larry for these 10 years, just look at what happened to Sybase who was winning against Oracle, then. Anyway so how to expense 700mm? It is compensation for 10 years of prior work. I sure don't think its right to deduct it from earnings in the year of exercise. The expiration terms dictate he MUST exercise or lose it. L