Warren Buffet Speaks Up On Options Issue

from the if-they're-not-an-expense,-what-are-they? dept

There's been an ongoing argument about whether or not stock options should be counted as an expense. Tech companies have been very vocal against such a plan. Suddenly, they say, it will make it much more difficult for them to incent employees. Now, Warren Buffet has written a column supporting the other side. To him, stock options are obviously an expense. As you would expect, many of his points are valid. However, I'm not sure his arguments about how to price options apply as much to private startup companies - since there's no real market for those options.

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