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.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (121733)	7/18/2002 8:34:46 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 152472

The Death of the Options Culture The rip-roaring stock-option culture of Silicon Valley is another casualty of the worst stock slump in three decades. The implications are far-reaching, for employer and employee alike. online.wsj.com

To: Wyätt Gwyön who wrote (121733)	7/18/2002 8:58:01 AM
From: Art Bechhoefer	Read Replies (3) \| Respond to of 152472

Does Q expense options? Yes, when the options are exercised. That's the way the current law is written. You footnote the options and expense them when they're exercised. The cost is equal to the difference between market price of the shares and what the executive has to pay. I think the law makers are still missing the main point: Options are a way of obtaining a portion of one's salary in the form of capital gain, which if realized after a holding period of 12 months is subject to a lower tax rate than ordinary income. If capital gains were indexed for inflation, instead of subject to a preferential rate, this obvious loophole would disappear, and the typical executive might make do with the traditional performance bonus. Art