Voting across party lines, the House yesterday soundly approved a measure that would override accounting standards-setters and require companies to expense stock options only for their five top executives.
The House passed the bill, pushed aggressively by high-tech companies that rely on issuing options to executives and employees, by a vote of 312 to 111 after two hours of sometimes contentious debate. The House bill would derail a broader proposal by the Financial Accounting Standards Board, an independent group that is moving to force companies to treat stock options for all of their employees as an expense.
The House measure directs regulators to study the consequences of expensing stock options, which give workers a chance to buy company shares at a set price and within a particular time frame. It also instructs companies to use a method for valuing stock options that critics argue is prone to manipulation.
Another one from the Concentration of Wealth department.