Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

A lot of confusion about AMAT acceleration. The way I see it, the "savings" is only in "potential" recognition of "cashless" expenses, in case AMAT stocks goes above $18, when these option were to vest. By vesting them at once, when the stock is under the strike price, they avoid the need to recognize the difference between the option strike price and then actual price (at the time of vesting) as a "compensation expense". Not a bad thing. As a matter of fact, they probably should grant options only at the current price and let them vest at once to avoid any compensation expenses.....