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To: Chuzzlewit who wrote (43942)5/20/1998 7:01:00 PM
From: rudedog  Respond to of 176387
 
Paul -
There are many other types of stock plans which have different impact than the non-qualified option plan Dell and most other high tech companies use. Some of these also have the benefit of being fully accountable. But all of the ones I know about have more negative tax implications both for the company and the employee. I think that a well accepted method of accounting for the cost of the option plans would be better than using a sub-optimal plan just for tracking purposes. I have seen proposals that use the value of vested unexcercised shares as a liability. Another scheme is to do a true stock-indexed cash bonus which has exactly the same benefit to the employee but has an easily defined cost to the company at any point in time and is also non-dilutive. Either method would give shareholders a better picture of the outstanding liability.