"To allow the Financial Accounting Standards Board to develop standards of financial accounting and reporting related to the treatment of stock options."

• Calls on the The Financial Accounting Standards Board to develop standards for valuing and reporting stock options.

July 19, 2002: Sen. Mike Enzi (R-WY), introduces S. 2760 , Stock Option Fairness and Accountability Act.

"To direct the Securities and Exchange Commission to conduct a study and make recommendations regarding the accounting treatment of stock options for purposes of the Federal securities laws."

• Gives the Securities and Exchange Commission 180 days to analyze and make regulatory and legislative recommendations on the accounting treatment of stock options.

July 26, 2002: Rep. Amory Houghton (R-NY) introduces H. R. 5242 "Workplace Employee Stock Option Act of 2002"

"To amend the Internal Revenue Code of 1986 to encourage the granting of employee stock options."

• Offers added tax breaks for stock options.

July 30, 2002: Sen. Ron Wyden (D-OR) introduces S. 2822 "Prevention of Stock Option Abuse Act";

"To prevent publicly traded corporations from issuing stock options to top management in a manner that is detrimental to the long-term interests of shareholders."

Calls on the SEC to issue rules within 180 days that would:

• Require shareholder approval of stock option plans.
• Require that any stock options issued by a publicly traded corporation to any of its directors or executive officers have a vesting period of not less than 5 years.
• Prohibit any executives who acquire company stock from selling: -
  1. Any stock until 180 days after the date of acquisition;
  2. More than 25 percent of such stock until 3 years after the date of acquisition; and
  3. More than 75 percent of such stock until 180 days after such person ceases to serve as a director or executive officer of such corporation.
• Require every publicly traded corporation to include, in each regular quarterly filing to the Securities and Exchange Commission, a separately headed section or subsection the details what stock options have been issued and who owns them.

August 1, 2002: Joe Lieberman (D-CT) introduces S. 2877, Rank and File Stock Option Act of 2002.

"To amend the Internal Revenue Code of 1986 to ensure that stock options of public companies are granted to rank and file employees as well as officers and directors, and for other purposes."

• Requires half of the company's stock options to go to employees earning $90,000 or less in order for companies to get a tax deduction on options.
• Directs the Securities and Exchange Commission (SEC) to do two things:
  1. Finalize rules requiring majority shareholder approval on every stock option or stock purchase plan; and
  2. Make recommendations on "the need for new rules requiring top executives to hold their stocks for a set period of time and forbidding executives from selling their shares while still employed by the company."