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.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (62976)	2/6/2003 4:31:37 PM
From: GVTucker	Read Replies (2) \| Respond to of 77400

All of these points about expensing options might, might, be valid if there was universal consensus that these are real expenses. There is a universal consensus among accountants. The AICPA has wanted to expense options for almost a decade now. And given that this only concerns GAAP, accountants really are the only people that matter. The big investors, big players who understand the business agree with Chambers on options it is just the little guys and people outside the business making all this noise. There are plenty of big investors who disagree with Chambers. If you know anyone over at Kleiner Perkins, ask that person how many people there think options should be expensed. You'll be surprised at the answer.

To: Lizzie Tudor who wrote (62976)	2/6/2003 4:55:20 PM
From: rkral	Read Replies (1) \| Respond to of 77400

OT .. Lizzie, re "This is not to mention [edit: .. ] the pay concessions the employee takes for options, do we get to credit that as income?" "pay concessions"? You are recognizing that option-compensation is in lieu of cash compensation. Since the later is expensed, why shouldn't the former? If the company stopped granting stock options, wouldn't it need to increase cash compensation to remain competitive in the labor market? "get to credit that to income"? Lizzie, that's exactly what is occurring right now, because the value of option grants is not being expensed. Congratulations. You are picking up bits and pieces of this options puzzle. One of these days, you're going to be able to put it all together. Ron