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To: Lizzie Tudor who wrote (157459)	5/24/2003 12:14:57 PM
From: hueyone	Respond to of 164684

The tech companies that use options will simply cease to use them if options are expensed. I don't know why this would be the case. The rational response from companies to expensing stock options would be to settle on grant rates that feel will maximize long term reported earnings. In Yahoo's case, apparently they feel this optimum grant rate is 2% or less. Regards, Huey

To: Lizzie Tudor who wrote (157459)	5/24/2003 10:49:39 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 164684

25% of likely Dem primary voters in New Hampshire favor Al Gore. (That's al gore jr presumably, not the man Al jr. inherited his Senate seat from, Al Gore Sr.) Gore is the frontrunner. Only trouble is, Al Gore is not running ! hahahahahahahaha !

To: Lizzie Tudor who wrote (157459)	5/27/2003 6:18:26 PM
From: Hungry Investor	Respond to of 164684

Lizzie, Timing might be everything here in the short term for public companies. Start ups will continue to issue options in order for people to take on the risk of working for a start up (current market aside). Public companies may well reduce the options they issue, although most of this will be the options they issue to rank and file employees. Management in public companies will still get stock options, just a higher percentage of the overall total doled out. However, usually you have some sort of quid pro quo for the non-executive folks in that instead of option plans you set up more generous cash based award plans, which affect the cash flows of a company. Additionally, you might have trouble attracting talent without a higher cash based compensation structure in lieu of a widely dispersed option plan. Again, timing here might work out beautifully. Given the dour employment outlook for tech companies (still more cutting than hiring), the larger public companies might get away with reducing these plans without the cash quid pro quo hit (give em the "your lucky to still have a job" speech). At the end of the day, stock or stock options are used as currency, especially at tech companies. I've had many an employee try to swap salary for more options at their time of hire or try to trade cash bonuses for more options. If options go away, over time salaries and bonuses will increase, increasing pressure on cash flows. The recognition of options as a form of currency is one of the reasons why people have been pushing the recognition of these option grants in the income statement for years. Regards, H.I.