Last modified: July 26, 2004 11:28 AM PDT
Narrowing my options
Interesting article. No doubt where your sentiments lie. I have mixed feelings on the subject.
On the one hand, the last 5 percent of my salary goes completely to taxes. Do I want a raise or stock options? Duh. On the other hand, our company's last annual report stated that 90 percent of stock options went to the top 100 managers. Do I feel bad for them if they get fewer?
Then there's the technical accounting angle: My simple mind thinks that stock options ought to be an expense, but only when they're cashed in. Many times, they can expire, become worthless, or the recipient loses eligibility. If you proceed from that assumption, what's the logical accounting practice to follow?
And whether or not they're expensed, it doesn't force companies to do anything; it's just another factor they have to take into consideration when they decide whether to offer them.
Al Maurer
Colorado Springs, Co.
