Man Without Qualities

Thursday, October 16, 2003

Some Options Sense From A Former SEC Commissioner

There are signs that the post-Enron madness in securities regulation and corporate governance continues tentatively to abate. The new marginal evidence of creeping sanity:

Former acting chairman of the Securities and Exchange Commission Laura Unger took issue with the FASB's move toward mandatory expensing of stock options.

"Companies like Intel, Cisco and even Microsoft wouldn't be what they are today without stock options. Eliminating broad-based plans for employees - which would be the net result of mandatory expensing - would curtail job growth and will make it harder for U.S. companies to compete in the global marketplace," said Unger.

The comments were made in an interview with Jim Glassman, a transcript of which can be viewed at Ms. Unger raises various interesting points contraindicating the wisdom of expensing options.

Now, if only some current members of the SEC could have the guts to oppose this FASB expensing foolishness.

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