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- Give it up RSA
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It's just a number on the accounts. It's not controversial, its been studied since the early 80's and the formula's been used since 1972.
It's not just the dilution thats a problem. Companies issue options in lieu of wages, it reduces the wage bill, reduces wage taxes and makes the company look more profitable than it really is. It also creates a 'cap' effect on the share price with all these options waiting to reach strike price.
All the majors companies now expense options and we're left with the minor players like RSA. (RSA founded in 1989 I believe, so this proposal has been studied longer than RSA has been using this options accounting trick). - Posted by: Nigel Johnstone Posted on: 03/31/04 You are currently: a Guest | Members login | Terms of Use
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