A Defense Of Stock Options
from the keep-'em dept
As the arguments over whether or not to expense stock options get more heated, Michael Malone weighs in with his opinion on why they should not be expensed. He makes some compelling arguments about how they helped build Silicon Valley, and that actually expensing high tech options fairly is nearly impossible. I still think he leaves out the most convincing argument – which is that the information is already public and it’s just lazy investors and analysts who can’t be bothered to look at the numbers. Actually expensing the stock options doesn’t necessarily make sense, because it would just be one more made up number on the income statement that wouldn’t reflect reality in any way. That said, I don’t think it would “kill” Silicon Valley either. I think that most companies and analysts would learn to adjust, and someone would find some loophole to get around all of this anyway.