This paper examines employee stock options
from these two very different perspectives.
SINCE THE ENRON COLLAPSE IN MID-2002, the Financial Accounting Standards Board (FASB) has been pressed to require that companies include the hypothetical expense of their employee stock options
in their financial statements.
This successful ESOARS auction supports the effectiveness of this method for valuing employee stock options
," said W.
But because employee stock options
can't be traded publicly, their fair value is not readily available and must be estimated using option-pricing models.
a) Proposal for adoption of a global employee stock option
program The Board of Directors proposes that the General Meeting shall resolve to adopt a global employee stock option
program, according to which employees of the group can be allocated stock options (so called employee stock options
), which entitle the option holder to acquire shares in Biotage.
Companies, especially high-tech, argued that recording employee stock options
as a compensation expense would lower their reported earnings and would put them at a competitive disadvantage in the race to raise capital.
Adoption of a global employee stock option
program The Board has resolved to propose that the General Meeting shall resolve to adopt a global employee stock option
program, according to which the employees of the group can be allocated, at no premium, in total not more than 1,000,000 stock options until the Annual General Meeting 2008.
Nokia's 1999 employee stock option
plan, approved by the Annual General Meeting in 1999, expired as of 31 December 2004.
But proponents of broad-based employee stock option
programs cite the recruitment benefits of offering equity incentives to employees at all levels.
The purpose of the proposed employee stock option
program is to provide opportunities for keeping and recruiting skilled employees and the Board is of the opinion that the adoption of a stock option program according to the above is to the benefit of the company and the shareholders.
The reason for the delay is that the Group is reevaluating the accounting treatment given in previously reported financial statements to the following two matters: (i) certain mortgage loan purchases recorded in the first and third quarters of the fiscal year ended June 30, 2005, and (ii) certain employee stock option
The Board of Directors shall decide on the more specific terms and conditions for the employee stock option
The Board of Directors further proposes that the General Meeting shall approve transfer of shares to the employees in accordance with the employee stock option
Recognizing an employee stock option
as a liability, on the other hand, would point toward exercise-date accounting.
Smith Barney will serve as the employee stock option