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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (9844)	4/12/1998 7:34:00 PM
From: StaggerLee	Read Replies (2) \| Respond to of 27307

>>If the stock crashes like you say, then that will free that $5 million up, won't it! :)<< That's not how it works. Under FAS 123 compensation cost is measured on the grant date based on the fair value of the options and is recognized over the vesting period. The fair value of the options is not subsequently adjusted for the change in the price of the stock (or changes in volatility or other components of valuation). Though, I agree that if the stock crashes, it will mean that YHOO has expensed a cost that in reality has no economic impact on the company. (But by the same token, so far the company has "lost" more on the options arrangements than they have expensed, since the stock price has risen.)