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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: Ted The Technician who wrote (196)	8/16/2002 12:37:04 PM
From: hueyone	Read Replies (1) \| Respond to of 786

It will be more difficult to do quarter-to-quarter comparisons with price-sensitive option grant expenses being buried within the income statement. I expect you are aware of this, but SFAS 123 provides for the amortizing of stock option expenses over the vesting period of the options, hence, the expense on the income statements from moving Black Scholes to the income statements, will probably not vary as dramatically from quarter to quarter as one would expect were the expenses simply representing the value of the grants issued in that particular quarter. Hence, I do not think the problem of quarter to quarter earnings comparisons comprising great changes in underlying options expenses will be big a problem once the phase in stock option expensing is completed. In addition, I do not expect the stock options expense to be "buried" in the income statements. I expect this to be a line item that can be evaluated like any other line item. JMO, Huey