As a result, they are scrambling to institute damage control and are re-examining their own compensation and reporting policies to determine whether they backdated or otherwise manipulated the timing of stock options
Because the lattice model makes it easy to vary assumptions and inputs over time, entities that grant a great many stock options
to their employees will prefer its flexibility to the relatively rigid restrictions of the Black-Scholes-Merton model, which is more suitable for companies whose employee compensation includes few stock options
While share-based payment arrangements include stock options
, restricted and unrestricted stock, share appreciation rights and employee stock purchase plans, this article focuses on accounting for stock options
Prior to A's divorce from B, A's employer Y issued A nonstatutory stock options
as part of it is compensation; no amount was included in A's gross income at the grant.
TEI noted that the divergent treatment of stock options
for tax and financial accounting purposes continues to spawn much discussion and inquired whether the Treasury Department anticipates proposing any changes in the tax treatment of stock options
Incentive stock options
are not transferable under the tax laws.
NASDAQ: EPIX) announced today that it is postponing its earnings release announcement, previously scheduled for today, due to its ongoing stock option
Changes in the tax law also enhanced the appeal of corporate dividend payments, which are generally available for restricted shares, but not stock options
123(R) on the horizon, Nagel shared his thoughts about his three-year odyssey into expensing stock options
with JofA managing editor Cheryl Rosen.
1041 (nonrecognition of gain or loss) did not apply to stock options
(both qualified (ISOs) and nonqualified (NQSOs)) transferred pursuant to a divorce, because the options' value was compensation, not gain.
It also issued Notice 2002-31, which details the proposed rules and guidance for employers in situations involving stock options
In the absence of subsequent guidance modifying or eliminating the separate reporting requirement first announced in Announcement 2000-97, Announcement 2001-92 states that the amount of compensation from the exercise of nonstatutory stock options
included in boxes 1, 3, and 5 must also be shown separately in box 12 of Form W-2, using Code V.
Concerned about adequate compensation disclosure and the overall level of CEO pay, the SEC and other watchdogs are tightening guidelines on stock options
are among the companies that have either stopped granting stock options
to employees or have cut back to offer them only to top executives.
Accounting treatment for stock options
needs to change.