Inclusion of Sotck Options in Corporate Expenses

[Funkyalligator]

One of the big issues that Congress seems to be trying to avoid is the inclusion of stock options as expenses. I agree with this because it would give an investor a better idea of how the company is doing and will also force ceo and others to actually care that the company is doing well instead of sitting back and laughing about how the company is going down the tubes and then walking away with a ton of money.

[Art]

Granting stock options should absolutely not count as an expense. The exercise of stock options should, but, the simple act of granting them should not anymore than granting them should count as profit if the market is down below the strike price. In the situation we have today, many companies are experiencing a situation in which the majority of the options they've granted are under water.

Congress would have them qualify the simple grant of these options as a corporate expense, even though over time, if they go down and are never exercised, they didn't cost the company a dime. Once exercised, sure, but if not, then no way.

[Atlanta Skins Fan]

Art, companies take tax deductions on stock options, but they don't report them on their income statement.

The argument that stock options can't be quantified doesn't hold water. The fact that stock options are sometimes worthless also is irrelevant -- many company assets and expenses (such as goodwill as an asset or a premium in an acquistion) can also go to zero.

Stock options can also be line-itemed after net income from operations, before one-time charges. Like one-time charges, their place is as a special line item.

[Atlanta Skins Fan]

Now, "Inclusion of Scotch items in corporate expenses" -- that's something I'm also interested in seeing.

[NavyDave]

Thank God for family inheritances.

The government still steals far more money from us than these business have done.

With the companies you have the choice of rolling the dice with your dollars not so with the government who come up with creative ways to spend it (Marine research in West virginia?)

[Funkyalligator]

Also by including stock options as an expense it will force the ceos to be more acountable to the shareholders instead of to the public perception of the company which is what usually drives stock prices up.