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To: Kirk © who wrote (65512)5/14/2004 2:23:17 PM
From: rkral  Respond to of 77400
 
OT .. Kirk, re "options are designed to scam wealth from shareholders. As I have learned more, it seems restricted stock is the way to go ... "

I have no problem with either, as long as both are expensed. Both transfer wealth from existing stockholders to employees. Grants of restricted stock have always been expensed AFAIK. Grants of non-qualified fixed stock options to employees are not expensed, at least by most companies.

A grant of unvested stock, aka restricted stock, is just an option grant with automatic exercise at an exercise price of $0. How logical is it to expense one, but not the other?

Ron