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To: sat2000 who wrote (16366)	8/2/2002 6:04:52 PM
From: Kirk ©	Read Replies (1) \| Respond to of 42834

> Why can't a standard method be adopted for all companies to treat employee stock options? Until this is done how can the average Joe six-pack investor evaluate various companies treatment of options? Good question. Without a standard method, anything they choose will have problems. As to #2.. Dilluted EPS, Book Value, cash flow, etc. all tell you what is going on. Pete would know better, but I believe Book Value (or some other item) includes the market value of treasury shares and it is these treasury shares that are issued to employees who exercise options. investorwords.com Most option plans that I have voted for authorize the company to ISSUE more shares to cover the optins plan. Basically, shareholders are asked if they wish to dillute their EPS to provide incentive to employees. These shares are thus held in the treasury until the employee decides to exercise his option where he THEN sends CASH INTO the company. Some companies use it as a way to finance growth in that they issue new shares to employees through options and use the cash flow to grow.