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To: PerryA who wrote (64522)	9/14/2003 11:31:59 AM
From: Don Lloyd	Respond to of 77400

Perry, Doesn't matter. They have confused you by combining a financing activity with the compensation activity. The combination means that corporations can pay people without the use of cash and that shareholders risk dilution, but don't let that through you off. It is still an expense paid by the company. I can assure you that if I want to be confused, I am perfectly capable of doing it myself. No 'they' need apply. I am NOT the one confused here. Expensing options is like outlawing bridge abutments to prevent drunk driving deaths. It is company share repurchases to disguise dilution that are the villain of the piece. Regards, Don

To: PerryA who wrote (64522)	9/14/2003 11:49:59 AM
From: hueyone	Read Replies (2) \| Respond to of 77400

You are exactly right Perry. I often think if any of these people arguing against expensing stock options actually ever owned or operated a business themselves, they wouldn't get so confused about the simple matter of an individual paying expenses on behalf of the company, and they would be certain to record such payments on behalf of the company as a company expense. Happens all the time. But at least Microsoft is now admitting the reality that stock options are a business expense. They certainly didn't do this for publicity or because they want to report lower earnings than they actually have (lol!); they did this for one reason---because expensing stock options on the income statement more accurately reflects the economic results of the company's operations. Regards, Huey