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In Palo Alto, Voices Raised Against Options Expensing







In Palo Alto, Voices Raised Against
Options Expensing

In Palo Alto, Voices Raised Against
Options Expensing
06/25/2004 10:11 AM

TheStreet.com Jun 25 2004 1:48PM GMT




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In Palo Alto, Voices Raised Against Options Expensing

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House says no to expensing options


House says no to expensing options 07/20/2004 04:23 PM
House of Representatives approves controversial bill that largely maintains current accounting rules regarding employee options.

IBM starts expensing options


IBM starts expensing options 04/06/2005 01:50 PM
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Sun saves $315m by not expensing options 05/11/2004 03:29 AM
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House Says Options Expensing OK for Top
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House Says Options Expensing OK for Top
Execs Only
07/21/2004 11:16 AM
The U.S. House of Representatives has buckled under pressure from technology companies and wants to intervene with accounting standards bodies to let companies keep misleading their investors. That's the bottom line in Tues day's U.S. House of Representatives vote (Mercury News) to allow companies to continue to hide the cost of stock options from the bottom line. It's a shame to see this, but not surprising. The House did say that it would require companies to expense options granted to the five top executives in many companies. Apparently, financial transparency is sort of, kind of, sometimes useful, after all. A better idea would have been to eliminate options entirely for those senior folks. They have the most incentive -- and the most ability -- to tweak financial results to get short-term advantage that gives them giant paydays when stock prices rise. Keep options for the rank-and-file, but account honestly for them. The whole thing is probably a charade, anyway, because the Senate seems unlikely to go along with the House on this. Eventually, stock options are going to be expensed. Eventually, Silicon Valley will face reality.

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Expensing options would have cut Yahoo
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BusinessWeek Online - On weekdays, Jeff Solof is director of Sun Microsystems' Web site. On weekends, he's a deacon at an Eastern Orthodox church in Worcester, Mass. But the 44-year-old father of two has a dream: When he hits his 50s, he'll cash in his 40,000 Sun stock options and become a full-time minister. Stock options "are a long- term incentive" to stick with Sun, he says.

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Palo Alto's Fiber Is Doing Fine


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Palo Alto's fiber network: I admit that fiber-optic networks have little to do with wireless, but we're still playing clean-up from this week's flurry of activity around an astroturf report on municipal broadband. (Scan through the archives for more on that.) One piece of email I received during this week from Jeff Hoel in Palo Alto long and interesting as relates to their fiber network. Palo Alto was one of the first cities to build their own infrastructure. They have not been cited in any of the reports or ancillary material that have disputed the efficacy of municipal networks and I was interesting in finding out more. Jeff has a lot of points to make and, with his permission, I reproduce his email in condensed form below. (Note: Jeff writes about FTTH, which is Fiber To The Home. Many fiber systems are fiber/coax hybrids in which fiber is the backbone and drops to the home use coaxial cable to reduce expense and complexity.) Jeff writes: I'm a Palo Alto resident and an enthusiastic supporter of muni FTTH here. In your 2-1-05 article "Beat the TechBeat on Muni Wireless", you say: The author conveniently ignores Palo Alto, an early fiber-optic deployer, and I have no idea whether that project was vastly successful or a huge failure. Based on what I know about the growth of Internet businesses around Palo Alto that have remained post dotcom bubble, it seems that fiber might actually attract business. Here's what I think is going on in Palo Alto. The city put in a dark fiber infrastructure in 1996. [1 (PDF)] [2] It's doing fine, in that it's making money and paying off its investment. But the service is expensive enough that only businesses can afford it. The city put in a 66-home FTTH Trial system in 2001. It's doing fine, in that participants are happy to pay $85/mo for Internet service. During the first year, phone service was also offered, but after that it was dropped because the point had been proved that you could do it. RF analog TV was also demonstrated to work technically, but was never offered as a service because of the hassle of buying the content. The Trial cost something like $640k; nobody ever thought it would pay for itself eventually. I think the equipment chosen for the Trial is not the equipment we'd want for a citywide system, which...

Microsoft regala su compilador de alto
rendimiento


Microsoft regala su compilador de alto
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04/20/2004 10:17 PM

Will Expensing Cost The U.S. Jobs?


Will Expensing Cost The U.S. Jobs? 12/17/2003 07:16 PM
Business Week Dec 17 2003 6:00PM ET

More Whining About Stock Option
Expensing


More Whining About Stock Option
Expensing
09/22/2004 04:20 AM
It's getting ridiculous how much effort is being put into the effort by both sides on the debate over whether or not companies need to expense stock options. This is entirely an accounting question with no direct impact on cash. It shouldn't impact a company's operations in the slightest if they were forced to expense options, but it certainly won't do a bit of good towards cutting down on fraud (the original reason the concept was proposed). The companies that claim this will kill innovation are making a big deal out of nothing. Anyone who will suddenly change how they feel about a company as an investment opportunity because of this is completely clueless and shouldn't be investing anyway. That said, the only thing that putting this law in place would really do is give some more money to accountants to figure out how options should actually be expensed -- and for that reason alone it's probably better if things were left as they are on the issue. However, the companies complaining that politicians aren't paying enough attention to this issue have it wrong. They're paying too much attention to it.

The 'real' numbers behind stock
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The 'real' numbers behind stock
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Intel CFO says continues to oppose
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Intel CFO says continues to oppose
option expensing
05/19/2004 05:43 PM
Reuters May 19 2004 9:33PM GMT

Intel shareholders pass option expensing
proposal


Intel shareholders pass option expensing
proposal
05/19/2004 05:43 PM
Reuters May 19 2004 9:33PM GMT

House Passes Bill Saying No To Stock
Option Expensing


House Passes Bill Saying No To Stock
Option Expensing
07/20/2004 06:09 PM
As expected, the House today passed the bill saying FASB can't force companies to expense options, instead saying they should follow the plan suggest ed two years ago by Craig Barrett, that only top execs have their options expensed. The bill still has to make it through the Senate (and the President, of course), which may be difficult. This still seems like a lot of talk over nothing. It doesn't involve any cash movement, just the shifting around of numbers on a piece of paper -- and the most important part of those numbers is already known. Anyone who really needs to know this information already knows it. The only thing this might change is the perception of some people who haven't been paying attention concerning the profitability of a company.

Congress Likes Compromise Solution On
Stock Option Expensing


Congress Likes Compromise Solution On
Stock Option Expensing
06/16/2004 04:44 PM
While the Federal Accounting Standards Board has been planning to force companies to start expensing stock options, Congress appears to have other plans. A committee voted on a new bill that would bloc k FASB's ruling and put in place more of a compromise solution that sounds almost exactly like the proposa l Intel's Craig Barrett made two years ago. Instead of expensing all options, just expense those of the top five executives of each company. This way, companies aren't penalized for giving stock options to everybody else. Of course, it still seems like the whole discussion is overblo wn. It's really just shifting a few accounting numbers around -- and anyone who can do a little math can figure out the impact on financial statements for comparison purposes. It's still unclear why FASB is so insistent on expensing options, when doing so will actually make financial statements even less accurate. Most of the info (other than price, which is pretty much made up on the spot) is already in financial statements, so it's unclear what benefit there is to adding an arbitrary price to the options. This proposed law still has a way to go, however, and some powerful forces are very much against it. As with so much in Congress, expect plenty of heavy lobbying and the end result to probably be a lot less reasonable.

UPDATE 2-Intel shareholders pass option
expensing proposal


UPDATE 2-Intel shareholders pass option
expensing proposal
05/19/2004 05:43 PM
Reuters May 19 2004 9:33PM GMT

UPDATE 1-Intel shareholders pass option
expensing proposal


UPDATE 1-Intel shareholders pass option
expensing proposal
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Reuters May 19 2004 9:33PM GMT

IBM Reports 2005 First-Quarter Results;
Reflects Expensing of Equity
Compensation


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Compensation
04/15/2005 12:28 PM
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Many voices over IP


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Global Voices


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I participated in the Global Voices session at the Berkman Center and promised earlier to post my thoughts. The bad news is that we didn't get far enough to come up with a conclusive plan, but the good news is that I think we have enough momentum to move forward. The discuss was quite sober and practical and was not nearly as techno-utopian as we are often criticized of being and often tend to get.

I think the key difference between this meeting and others that I have attended was the large number of mediums (Wikipedia, OhmyNews, traditional journalism, human rights organizations, bloggers, TV and radio) as well as the strong regional diversity (Iraq, Iran, Malaysia, Kenya, Korea, China, Japan, Pakistan, US and many others). Most of the people in the room were already members of a variety of organizations and projects so we tried to find a common ground. I think that we came to a consensus that freedom of speech and providing voice was extremely important and this could and should take various forms. We agreed to commit to working together to help each other in our efforts. I'll post more when we are a bit more organized, but you can see the discussion we are having on the blog, see a partial list of the participants on Hoder's wiki (it will be moved to a permanent place soon), see a log of the real-time transcripts provided by SJ and join us on #globalvoices on Freenode to chat. There are more resources on the blog. Sorry it's a bit disorganized right now. We will try to organize it more soon. One of the things we hope to do is be much more inclusive of ways to participate and not focus on any one mode. This will complicate things a bit, but I think it's worth it.

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In Palo Alto, Voices Raised Against Options Expensing

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