More Whining About Stock Option Expensing
from the give-it-up-already dept
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.