Hey Chinwhisker,

You will find a Motley crew of opinions here from writer to writer. That's one of the joys of working here. And also consider the time Warren was writing -- long before a groundswell existed for expensing. We were out in front of that one for years.

But we don't disagree. Today's follow up Rule Breaker column makes it clear that we use the 5%/3% guidelines precisely because there is a case for the view you cite from Warren. 5% annual ESO grants for newer, developing companies; 3% for established. That 5% is 67% greater than 3%. ;-)

And I also think there's a case that expensing options and the percentage of grants are not linked, but I haven't spent a lot of time on that.

The column will be published later this AM/around lunchtime.

Thanks for posting.

Best,
Tom9