Earnings, IPOs, and the like

Earnings, IPOs, and the like

by Mike Masnick




A Potential Compromise On The Stock Option Reporting Question

from the tossing-out-ideas dept

A popular topic in Silicon Valley these days is the question of whether or not stock options should be expensed. The arguments on both sides can be convincing. Now, Intel's Craig Barrett has come out suggesting a middle-ground compromise. He says that the the stock options granted to the top 5 execs in any company should be expensed, but the options of everyone else shouldn't be. This way, the largest stock options grants are costly, but rank-and-file workers are not effected. It seems like an interesting compromise, but doesn't do much for the argument of presenting more accurate financial statements.

2 Comments | Leave a Comment..

 
 

Reader Comments

(Flattened / Threaded)

    May 23rd, 2002 @ 2:14pm
  • A slight modification

    by ghjm

    How about expensing stock option grants to anyone who already holds 5% or more of the company's stock? It achieves essentially the same effect but it's a class of people that the SEC already tracks, so it might be easier to implement...

    (reply to this comment) (link to this comment)

  • Jun 14th, 2003 @ 9:16am
  • No Subject Given

    by hgx

    jffhgff

    (reply to this comment) (link to this comment)

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