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

To: hueyone who wrote (125875)	12/5/2002 7:37:00 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 152472

good points, huey. indeed, the authors employ circular thinking. the problem i have with expensing at exercise is that it's not very helpful to investors. exercise cost to the company--an opportunity cost, really (i.e., an after-the-fact debate over would they or wouldn't they have been better off by offering cash compensation instead of options)--reflects the past; but investors are interested in the future. therefore, we need an indication of what the co's current compensation to employees is; not what it was in the past. the only way to get an idea of the ongoing expense structure of the co is not to look at the opportunity cost of exercises after the fact, but rather to look at the expenses in the hear and now every time options are granted.