Warren Buffet Speaks Up On Options Issue
from the if-they're-not-an-expense,-what-are-they? dept
There's been an ongoing argument about whether or not stock options should be counted as an expense. Tech companies have been very vocal against such a plan. Suddenly, they say, it will make it much more difficult for them to incent employees. Now, Warren Buffet has written a column supporting the other side. To him, stock options are obviously an expense. As you would expect, many of his points are valid. However, I'm not sure his arguments about how to price options apply as much to private startup companies - since there's no real market for those options.
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Uh-huh
At Berkshire, we frequently buy companies that awarded options to their employees -- and then we do away with the option program.
I can attest to that. I was lured to a company with the promise of employee ownership (aka stock), but the company was later bought by Mr. "I have my billions and the rest of you can go screw yourselves" Buffett. Needless to say, I ain't there anymore.
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