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To: Techplayer who wrote (383879)4/1/2003 10:01:25 PM
From: DuckTapeSunroof  Read Replies (2) | Respond to of 769670
 
Re: "A stock grant has value when it is granted."

>>> Yes.

"An option typically does not."

>>> Unless it is already in-the-money... as many are.

"The stock in the company needs to go up for value to be realized."

>>> No. It has a cash basis immediately (unless restricted.)

"I believe that a stock option will inspire its' holder to work harder and smarter to help the company be more successful while a grant will not have the same effect."

>>> Why?

"Now, if a company NEEDS an employee to stay on board, grants are certainly a better tool."

>>> Why? The available evidence seems to show that stock better aligns an employee's interest with the company's long-term growth than options - which can be walked away from if they are under-water, and there is far less incentive for upper management to cook the books for a short-term options cash-out.