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  Microsoft Will Give Shares, Not Options
Time: 00:00 EST/05:00 GMT | News Source: Associated Press | Posted By: Robert Stein

Microsoft Corp., the granddaddy of stock option compensation, will abandon the practice and instead give shares outright to all employees. The software giant also said Tuesday it would expense the cost on its books, potentially knocking down profits by billions of dollars. The change in stock compensation means employees will automatically receive actual shares of Microsoft stock over time instead of options — the right to purchase stock at a set price.

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