Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: valueminded who wrote (58202)	4/30/1999 1:51:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

Chris, from the individual income tax perspective options are taxable income but for corporate financial reporting purposes employee compensation from stock options is not an expense it is accounted for via a reduction in shareholders equity. The corporation derives a tax benefit in the amount of the employee's tax liability. It may sound strange but this is one of most significant factors that makes fundamentalists question the quality and sustainability of reported earnings. Mike