If you missed the big Barron’s article (How Much Do Silicon Valley Firms Really Earn?) story this past weekend on Silicon Valley’s accounting, you should definitely check it out.
There has always been a element of bullshit in not expensing stock options, but this has now moved towards absurdity.
Compaore & Contrast
Source: Barron’s
It’s OK when Google and other tech companies do it because disruption. Or something like that.
There is a famous blog post that posits, “If it is really a good idea, you don’t need to lie to sell it.”
Not expensing stock option compensation does not pass that test.
Also “Compaore & Contrast” above the table instead of “Compare & Contrast”