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Strategies for a discontinuous future.










Friday, December 17, 2004
 


Geeks 0, Jocks 1

"...Silicon Valley lost a decisive round in a long and hard-fought battle Thursday when the organization that sets corporate accounting standards served notice that companies would have to deduct the value of stock options when calculating profits."

Getting past the hype, there are many, many ways to game this rule, and the real winners are gonna be the beancounters. The Valley will find a standard trick or two to bring their books back into line.

That said, it's a very stupid idea. First, the problems that cost the most are at banks, hedge funds, etc - not at tech firms. Second, CEOs will continue to draw massive compensation because they still exert board-level control. So, this legislation will (as usual) create more problems than it solves.

The real victim of politics these days is, it appears, innovation. Perhaps Grove and co wanna hire a PR firm and recast 'innovation' as 'good ole Yankee ingenuity' or something - the geeks are losing.

-- umair // 6:52 PM //


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