Options in for an overhaul (stock options)

[54anickel]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/03/28/BUGK95RKV11.DTL

If you work at a company that offers stock options or an employee stock purchase plan, part of your pay package could be in for an overhaul.

This week, the Financial Accounting Standards Board will propose a new rule that could profoundly change the way companies compensate employees with stock.

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Some people are hoping the new rule will rein in executive compensation. But that is not the rulemakers' intent and is not likely to happen. Although companies may replace options with other forms of stock or cash, executive compensation is not likely to come down.

"A lot of companies will cut out the lower people. The top executives won't be hurt," says Jesse Brill, chair of the National Association of Stock Plan Professionals.
Rosen agrees. "Executives won't suffer. One way or another, they will get their outrageous take," he says.