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


To: carranza2 who wrote (125861)12/5/2002 7:45:04 PM
From: Wyätt Gwyön  Respond to of 152472
 
hi c2,

t's just a matter of time, in my opinion, before the FASB requires that options be expensed. It is clearly the correct thing to do.

i hope you're right. but i do not underestimate the clout of the pro options lobby. my prediction is that if FASB doesn't pull through, PEs will go down anyway over time as more and more investors realize that many American corporations do not have high standards (moral or accounting-wise).

I think it is these lessons that will make options less popular as a part of anyone's compensation package, regardless of how they are treated from an accounting standpoint.

that may be the case for rank and file employees (and doesn't it always seem that they shut the barn door after the horse has left), but i believe many execs at the top of certain cos will continue to have their enormous salaries delivered via options and clever accounting tricks.