CEO Greed and Stock Options

Stop the Stock Options Con Game

An explosion in the use of stock options as executive compensation fueled the recent epidemic of corporate fraud and abuse. The possession of huge quantities of options led many greedy executives to do everything they could (including cook the books) to drive the stock price up so they could cash in while the stock was artificially high.

Although corporations are entitled to a tax deduction when stock options are exercised, loopholes in accounting rules continue to allow corporations to avoid counting them in financial statements when they are issued, creating misleading financial reports.

Financial regulators and other experts have long proposed expensing options (i.e. closing the accounting loophole) as a critical step toward providing investors and others with a clearer financial picture of a corporation and restoring confidence in the markets. But many companies that use options -- especially many high-tech executives -- continue to fight to keep the accounting loophole open.

Citizen Works believes that expensing options is a modest yet important reform.

The Basics of Stock Options

Executive Pay and Options Links

TAKE ACTION!

Oppose The Stock Option Accounting Reform Act!

Contact your Senators and Representatives today and tell them to oppose S. 1890 / H.R. 3574 This bill would derail a proposed rule by the Financial Accounting Standards Board (FASB) to require stock options to be expensed. Currently, members of Congress are only hearing from a small but vocal minority composed mostly of high-tech executives and their lobbyists who are desperately trying to gain support for this bill. Congress needs to hear that you want independent and transparent accounting standards!