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

To: Elmer Phud who wrote (178371)	6/23/2004 9:02:03 PM
From: TimF	Read Replies (1) \| Respond to of 186894

I am on the side that says it does not reduce the wealth of the shareholders, at least at the time of granting. Really? That's a bit of a surprise to read. I would agree with the argument that the shareholders are getting something for the options so that their net wealth can be increased, but I can't see how it is not possible to consider a dilution (or a potential dilution that is only prevented by shelling out cash for buybacks) to be anything other then a cost to shareholders when considered in strict isolation. I suppose the "at the time of granting" can mean that you are focusing on the idea that the actual dilution doesn't take effect until the options are exercised, but that's like saying that signing a contract that gives differed cash to the employee rather then a current salary has no cost to the company at the time of the promise. Tim