Ta-Da! Cheaper Stock Options!
Ta-Da! Cheaper Stock Options! Are stock Betas, volatility, really going down as fast as stock option valuations suggest. This article suggest they are not.
Look, the only reason any investor wished companies to expense options is to reduce the number of options granted. An appropriate goal, perhaps, I question the approach.
There is limited value to investors by adding another non-cash item to earnings. Especially, one so difficult to value or in other words so easy to manipulate. Future cash flow per share is the metric investors desire and the information needed is how many options will vest over time and what is the dilutive impact on cash flow per share. Oh, and make sure you are getting our money’s worth when you grant future cash flows to employees via stock option grants.




