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.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Simba who wrote (16442)	8/9/2002 10:36:34 AM
From: Kirk ©	Respond to of 42834

You sound more like you have an axe to grind with CEO's finding a way to over pay themselves that their BOD rubber stamped. I suggest we fix this problem rather than mess up perfectly good accounting that currently PROPERLY accounts for options when dilluted EPS is reported. Another problem we could solve is dividends. Companies avoid paying dividends to save on the high tax rate ordinary income gets. Instead of a dividend, they buy their shares back. This rewards option holders and I don't think that should be the case. Employees are given options to make the company more valuable. Making the company more valuable by keeping dividends is not what I want as a shareholder. To fix the problem, the US government could just set the tax on dividends to zero or, 2nd best, make it equal to the LTCG rate. This would encourage dividends again and stock price would then rise on prospects of a rising dividend as it should. This is so obvious to me and I am not even an accountant... I guess being a shareholder AND an option grantee I understand it better as I've had to pay to get options, seen many years options go under water to expire worthless as well as make some nice money on options. Kirk