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Big business takes aim at stock option plan







Big business takes aim at stock option
plan

Big business takes aim at stock option
plan
07/14/2004 03:20 PM

A proposal to treat stock options as expenses in earnings statements comes under fire from America's largest businesses groups.




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Big business takes aim at stock option plan

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Intel shareholders OK stock option plan


Intel shareholders OK stock option plan 05/19/2004 10:27 PM
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Intel Shareholders Approve Stock Option
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More Whining About Stock Option
Expensing


More Whining About Stock Option
Expensing
09/22/2004 04:20 AM
It's getting ridiculous how much effort is being put into the effort by both sides on the debate over whether or not companies need to expense stock options. This is entirely an accounting question with no direct impact on cash. It shouldn't impact a company's operations in the slightest if they were forced to expense options, but it certainly won't do a bit of good towards cutting down on fraud (the original reason the concept was proposed). The companies that claim this will kill innovation are making a big deal out of nothing. Anyone who will suddenly change how they feel about a company as an investment opportunity because of this is completely clueless and shouldn't be investing anyway. That said, the only thing that putting this law in place would really do is give some more money to accountants to figure out how options should actually be expensed -- and for that reason alone it's probably better if things were left as they are on the issue. However, the companies complaining that politicians aren't paying enough attention to this issue have it wrong. They're paying too much attention to it.

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Stock-option attitudes are changing 01/24/2004 09:13 AM
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Other News: Stock Option Accounting


Other News: Stock Option Accounting 06/25/2004 10:24 AM
Changes in stock option accounting rules could affect Apple's bottom line.

Stock option bonanza for Dell's future
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Stock option bonanza for Dell's future
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Congress threatens stock option reform 06/14/2004 07:45 PM
Redlands Daily Facts,CA-3 hours ago ... is to ensure a continued source of cheap fuel for smaller businesses to grow, the bill would also grant a free three-year pass to Google, an established ...

Fun With Accounting: How Damaging Will
Stock Option Expenses Be?


Fun With Accounting: How Damaging Will
Stock Option Expenses Be?
06/02/2004 02:41 AM
This argument has been going on for years, and it seems like both sides are exaggerating either the need for or the damage that will be done by forcing Silicon Valley companies to expense stock options. In many cases, those in favor of the plan seem to believe that stock options are inevitably linked to fraud - which isn't true at all. While stock options can be linked to fraud, just expensing them doesn't change that. Most of the information (minus the somewhat arbitrary valuation) is already public information - it's just not as clearly noted in the financial statements. Thus, folks on Wall Street (and any savvy investor) should already know the impact of stock options on companies. Really, all this does, is shift some numbers around in the books - but doesn't impact real cash at all. For the people who the shifted numbers will really impact, the alternative calculations have already been done. The one shift may be that, due to the importance of "profitability," some companies may cut back on options because it appears to hurt their bottom line (despite having no impact whatsoever on cash flow). All in all, the big debate over stock options seems like a lot of talk over a very small issue. That said, I support the idea that we keep things as is - as the plan to expense them seems unlikely to correct any of the real problems with the system and seems more likely to create an additional accounting headache.

Tech Lobbyists Applaud Stock Option Vote


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Microsoft quarter down 17pc on stock
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Yahoo CEO reaps another huge stock
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As expected, the House today passed the bill saying FASB can't force companies to expense options, instead saying they should follow the plan suggest ed two years ago by Craig Barrett, that only top execs have their options expensed. The bill still has to make it through the Senate (and the President, of course), which may be difficult. This still seems like a lot of talk over nothing. It doesn't involve any cash movement, just the shifting around of numbers on a piece of paper -- and the most important part of those numbers is already known. Anyone who really needs to know this information already knows it. The only thing this might change is the perception of some people who haven't been paying attention concerning the profitability of a company.

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Congress Likes Compromise Solution On
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Congress Likes Compromise Solution On
Stock Option Expensing
06/16/2004 04:44 PM
While the Federal Accounting Standards Board has been planning to force companies to start expensing stock options, Congress appears to have other plans. A committee voted on a new bill that would bloc k FASB's ruling and put in place more of a compromise solution that sounds almost exactly like the proposa l Intel's Craig Barrett made two years ago. Instead of expensing all options, just expense those of the top five executives of each company. This way, companies aren't penalized for giving stock options to everybody else. Of course, it still seems like the whole discussion is overblo wn. It's really just shifting a few accounting numbers around -- and anyone who can do a little math can figure out the impact on financial statements for comparison purposes. It's still unclear why FASB is so insistent on expensing options, when doing so will actually make financial statements even less accurate. Most of the info (other than price, which is pretty much made up on the spot) is already in financial statements, so it's unclear what benefit there is to adding an arbitrary price to the options. This proposed law still has a way to go, however, and some powerful forces are very much against it. As with so much in Congress, expect plenty of heavy lobbying and the end result to probably be a lot less reasonable.

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Big business takes aim at stock option plan

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