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To: Kirk © who wrote (64599)	9/15/2003 5:32:29 PM
From: Boca_PETE	Respond to of 77400

Kirk: RE: ("As a shareholder, I vote for granting options to good employees in exchange for dilution of my shares with the expectation that the employee will be motivated to increase the value of my current shares enough to overcome the dilution. Why is this so hard for folks to understand?") AMEN! In my opinion FWIW, it's hard for people to understand the employee stock option issue because most jump to the inappropriate gut level conclusion that employee stock options SHOULD BE a company expense because the company grants the stock options. These people fail or refuse to see "the triangle transaction process that a close analysis of related cash flows reveals \|> (1) company grants option, (2) employee exercises option and buys shares under option directly from the company, and (3) third party shareholder buys those shares from the employee, not the company. They ignore the cash flows between these three parties and do not see the direct shareholder-to- shareholder payment of compensation that has nothing to do with the company when the employee sells shares that were bought from the company when he/she exercised the option. P

To: Kirk © who wrote (64599)	9/15/2003 7:28:10 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77400

PS MSFT is not much of a growth company these days and options were worthless to motivate employees so they changed programs. Good PR for them to expense something they won't use AND it hurts their competitors. Yes I completely agree. Nothing to lose for msft, everything to gain by killing options.

To: Kirk © who wrote (64599)	9/15/2003 8:47:33 PM
From: RetiredNow	Respond to of 77400

Actually, companies DO NOT need a shareholder vote to give away dilute your shares by giving away options. However, if I remember correctly Chambers has asked for shareholders to vote on whether they were ok with the stock option plan and the shareholders voted in favor. I agree with you and I think many on this thread does agree that stock options are one very important part of a compensation structure in certain cases. However, what everyone is debating now is how that transaction should be recorded.