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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Phud who wrote (177353)	4/3/2004 7:44:08 AM
From: rkral	Read Replies (1) \| Respond to of 186894

elmerp, re "Options are granted at fair market value. They only gain value if the share price rises." During 2003, Intel granted 109.9 mln options with a weighted-average exercise price of $20.22. Per FASB SFAS 123 Intel reported a fair value of $9.02, or 44.6%, of the exercise. Since the grantees paid 0%, that 44.6% is the value received by the grantee. Mr. Barrett was granted 1 mln options at $16.42 exercise in January, and 0.35 mln options at $18.63 exercise in April. According to Intel's own numbers, these 1.35 mln options had a combined value -- on the grant dates -- of $10.2 mln = 0.446(116.42 + 0.35*18.63). Their value on the grant dates remains unchanged by subsequent price action of the underlying stock. Regards, Ron

To: Elmer Phud who wrote (177353)	4/13/2004 9:59:38 AM
From: Amy J	Read Replies (2) \| Respond to of 186894

Elmer, while I'm against expensing options, unlike you I'm not in favor of handing out options in a way that creates a doubling up on the way down simply due to a stock pattern that's like a sine curve - up, down, up down. Would prefer to reward hugely when they get a company out of a sine curve, but not before - even though I certainly appreciate everyone's hard work and all, and they have indeed navigated Intel around a horrible downturn and kept things steady. Regards, Amy J