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To: Sun Tzu who wrote (4446)	4/12/1999 10:39:00 AM
From: Kirk ©	Read Replies (1) \| Respond to of 15132

Sun Tzu, I agree, but isn't what really matters to shareholders at the end of the day is how much operating profit there is per share? If stock options are accounted for properly and show in diluted earnings, do we really have some hidden "boogy man" to worry about in the future? I am still trying to get a handle on the "problem" and found that Msft seems to go to great lengths in their quarterly statements to show the effects of stock options on the value of the stock to shareholders. regards Kirk

To: Sun Tzu who wrote (4446)	4/12/1999 10:44:00 AM
From: Investor2	Read Replies (1) \| Respond to of 15132

RE: "In other words, companies are lowering their operating costs by paying their staff in options. Then they do a "buy back" or more often a synthetic buy back to cover the dilution issue without properly showing this slight of hand in the financial statements." Salary is an expense which is directly offsets revenues and therefore reduces both profits and taxes. How do these "synthetic buy backs" influence corporate taxes? Best wishes, I2

To: Sun Tzu who wrote (4446)	4/12/1999 10:56:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 15132

... these "stock buy backs" that you mentioned are more geared to prevent dilution due to employee option plans than they are for the good of the common share holder. Pardon me! Do you believe that "preventing dilution" is not in the shareholder's interest? Agree that stock options have become a form of employee compensation; that employee compensation is an operating expense; and should be shown as such. SEC and FASB also think that current accounting practices need to be revised and soon. General populace is completely unaware of the impact of options on operating earnings for the companies that they hold. Few believe that employees actually earn salaries that should be in excess of $2M or $3M annually let alone the tens and hundreds of Millions, some officers are skimming off the top. FWIW, Ian.