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.
Comments on “A Potential Compromise On The Stock Option Reporting Question”
A slight modification
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…
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