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To: GVTucker who wrote (173114)2/18/2003 8:51:52 AM
From: Amy J  Read Replies (1) | Respond to of 186894
 
Hi GV, we sit on the same side of the table on that one.

Regards,
Amy J



To: GVTucker who wrote (173114)2/18/2003 6:41:40 PM
From: brushwud  Respond to of 186894
 
I have not proposed taxing options on grant, that was tcmay. As I stated in a response to him, while taxing on grant might make sense from a theoretical perspective, in reality it makes much more sense to tax upon exercise, when the employee has the funds to pay the tax.

You're talking about two different issues: when (if ever) should a company expense an option, and when should a recipient be taxed. Why not have the company expense them on date of vesting, rather than grant or exercise? Usually by each vesting date, the employee has had a year of continuous employment and is being compensated for that. This would also spread out the expense over a few years. When the option is in fact exercised, in whole or in part, then the company would reconcile its accounts and the employee would pay his tax.