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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (179795)	7/15/2002 4:30:40 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 436258

DAK, I still fail to see why stock options wouldn't be expensed vs capital account and then slowly credited back as they decayed??? I know you have an axe on this, but I haven't gotten an answer. They're clearly compensation. Option grants should be treated the same as stock grants. It is the expensing of stock grants that is wrong. If the sole owner of a company grants a half interest in the company to his sole employee and quits paying him a salary, he has diluted his ownership by 50%. Does it really make any sense at all for him to record a phantom cash expense of half of the market value of the company as well? Stock grants are both compensation and real expenses to the existing shareholders, but those expenses are correctly, completely and precisely contained in the diluted share count. Option grants need to have an increased impact on the diluted share count. Regards, Don