Eliminating Options or Raising The Sea Level?

The headlines read "Microsoft Drops Stock Options," but the real news is that Redmond is concerned that options are no longer the employment lure they once were now that so many high-tech options are "underwater" after the stock market collapse of 2000-02. The small print in the story is that Microsoft is also devising a way that employees can sell underater options -- where the exercise price is greater than the stock's market price -- for cash to an investment bank. So while the press clamors on about the debate on expensing stock options, they're missed the point.

 Posted by glenn