House debates stock option bill

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Money doesn't grow on trees

'"The notion that stock options are an expense is absolutely absurd," said Rep. David Dreier, '

Major corps like Coke already expense options, are they absurd?

'Stock options "align the employee interest with the company interest, and that produces a motivated worker,".'

The FASB wants to expense options, so that the shareholders can see how much those options are costing and decide if they are being used wisely or not. Why shouldn't the shareholder be allowed to know?

You can even put it in the accounts as a separate line item:

Profits before expensing : $2 billions
Cost of options Expensing: $3 Billion.
Profits after expensing: ($1) billion.

The company could even put an comment in the accounts that "they really don't agree with the FASB and would like shareholders to ignore the cost of options expensing to get the real number".

So whats the problem? Responsible companies already expense options, it hasn't done anything to harm them!

Posted by: Nigel Johnstone   Posted on: 07/20/04 You are currently: a Guest | Members login | Terms of Use

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