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To: Wizard who wrote (145229)	8/12/2002 11:13:38 AM
From: H James Morris	Respond to of 164684

>>* Large technology companies oppose expensing options, with bellwethers Cisco and Intel reiterating their opposition last week. A few tech companies, such as Amazon.com, are planning to switch, but the biggest tech firms rely most heavily on handing out options as incentives--and thus claim to have the most to lose if they must subtract the options' cost from profits. * FASB is weighing other changes that could muddle the picture. For instance, companies that voluntarily switch to formal expensing wouldn't just begin treating options as a cost, but also might have to expense their options retroactive to 1995 and restate earnings for years since then. For companies with lots of options, that would make their past performance look much worse and jeopardize their stock prices, even though the change wouldn't involve a cash drain on the firms, analysts said.<< IMOP, I don't think employees need to be alarmed at the prospect of getting fewer options. At the end of the day it's going to be a non-event.

To: Wizard who wrote (145229)	8/12/2002 12:34:13 PM
From: Suresh	Respond to of 164684

Wizard, if stocks keeps dropping as they are now, employees may themselves want more cash compensation than stock option. Cash hoard of many of these option issuing companies have increased because of selling shares (due to option exercise) to employees. Well anyway market will decide what they want to do with this issue. If big funds decide they want to value these assets in a different way, that is the way it is going to happen. Meanwhile, people can place their bet as they feel. -Suresh