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Dell to Accelerate Some Options

Alexei Oreskovic

Dell(DELL Quote) is accelerating the vesting schedule of some of its workers' stock options in order to lessen the impact of new accounting rules.

The Round Rock, Texas, computer maker announced Friday that it will fully vest previously granted stock options that have exercise prices higher than Thursday's $30.75 closing price. Typically, stock options at Dell vest over a five-year period.

The move is expected to reduce Dell's fiscal 2007 after-tax stock-based compensation to $250 million, or 10 cents a share, from its previous estimate of 18 cents a share.

Under a new Financial Accounting Standards Board rule, companies must include the cost of stock-based compensation as a business expense. Companies must comply with the rules by the first quarter of their fiscal 2007 year, which for Dell begins on Feb. 4, 2006.

Shares of Dell were recently down 31 cents, or 1%, to $30.44.