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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (30780)	5/25/1999 11:00:00 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 152472

Jim, I should have clarified my earlier statement. Yes, the option is fully taxable at its value at the time it was provided - just as if it were (and is) part of the person's salary. But the INCREASE in the value of the option over time is taxable as a capital gain, and if the option is held for more than a year, the capital gain tax rate falls to 20 percent. Thus, part of the compensation package includes a preferred substitute for salary, taxable at half the rate for salary.