This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Options Reform Faces Roadblocks

A year ago there was tremendous momentum behind the idea that stock options should be expensed. But with the stock market rebounding sharply and many companies -- particularly technology firms -- fighting tooth and nail to preserve their right to use options, much has changed. Heading into 2004, such crosscurrents threaten to overwhelm the push toward option expensing.

Stock options were tarnished by the accounting scandals at Enron, WorldCom and other companies, and investor anger over declining portfolios helped push through reforms intended to curb corporate shenanigans. But the appetite for reforms may be on the wane.

"Investors don't talk about the things that make them unhappy when their stocks are going up," said Gary Lutin, an investment banker and shareholder rights advocate. "There have been so many other revelations of cheating and chiseling that the public pressure to do something about stock options may have subsided."

Heading into the 2004 elections, the technology industry is poised for an intense lobbying effort in defense of options and against expensing. Already, technology leaders have begun a coordinated effort, bending the ears of politicians who come through Silicon Valley and organizing letter-writing campaigns by technology workers to elected officials.

"This thing will heat up and turn into an election-year issue," said Lynn Turner, head of research at proxy advisory firm Glass Lewis. As the former chief accountant at the Securities and Exchange Commission, Turner is no stranger to political fights over seemingly arcane accounting. "I fear this thing is going to turn into a bloody issue and turn nasty."

The stage is already set for a fight.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
MSFT $46.70 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%
TSLA $266.15 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs