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Subject:  From the Fool on the Hill Archives Date:  10/7/2002  10:29 PM
Author:  Chinwhisker Number:  7972 of 10421

I've read the statement made a number of times ... "Where was the concern over ESO expense 2 or 3 years ago?" Answer, right here;

TMFGump May 1999

Before closing out this series, let me point out that stock options are a very effective tool for companies to use in attracting and motivating employees. In addition, they provide a means for small, upstart companies with limited cash resources to attract superb recruits. My only beef is that they are not accounted for on the income statement, which leads to distorted financial reporting. Investors utilizing profitability and valuation measures in their decision-making process should not ignore this compensation expense.

The last of a 3 part article.


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