The Financial Acccounting Standards Board has finally stepped up to the plate and issued a new rule requiring public companies to expense stock options. FASB faced an intense lobbying campaign on Capitol Hill to block the proposed change. One Wall Street figure told me the campaign against expensing stock options was more intense than the campaign in favor of the North American Free Trade Agreement! Nonetheless, FASB has done the right thing.

Here is a link to a story on the change, a link to the FASB site where the full text of the new rule can be found, and a link to the testimony I delivered to a U.S. Senate Committee last spring supporting the FASB proposal.

FASB Issues New Rule on Stock Options



FASB

Diamond testimony: There is no free lunch