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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: IceShark who wrote (46753)	2/12/1999 12:06:00 PM
From: Exacctnt	Read Replies (1) \| Respond to of 132070

IceShark, <<Treat 'em like leaps and expense the option value over time as it vests. Sure it would be a little squishy setting the initial value, but better than nothing.>> That doesn't answer the question: What if a company practices a policy of covering options with an equal amount of Treasury stock generated from share buybacks? There is an option given to employees called a SAR (Stock Appreciation Rights) that does expense the gain as it occurs. The difference between this type of option and a regular non-qualifying option is that when the employee exercises the SAR, he doesn't have to pay cash. At his option, he can exercise and the company pays him whatever gain there is from the grant price. Regards, Bob