Just Another Blog
Tuesday, March 22, 2005
 
Expensing Stock Options

Sarbanes Oxley 404 will have a profound effect on the expenses incurred to manage a business even if it may ultimately have any real effect on how businesses are managed. The new rule requiring the expensing of stock options may have a much bigger short-term impact on the markets. Expensing of options now means eating up earnings whereas before it was a vague long term compensation arrangement that didn't eat from "real" money. This article explains it and the complications of putting a value on the hereafter expensed options as clearly as I've heard it yet and surely more clearly than I.