A new accounting rule that went into effect for most companies on January 1 requires that the cost of stock options be subtracted from earnings. That prompted a stampede of accelerated vesting, or bringing options granted before 2006 up to full value early.
The result: Over the next few years, earnings will appear higher than they would have otherwise.
Some companies say that's just good business sense -- like taking advantage of a tax deduction before it disappears. But watchdogs such as the Corporate Library say early vesting clouds the earnings picture and undermines the premise that stock options are meant to be a long-term incentive.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Here's a list, provided by the Corporate Library, of companies that have fast-forwarded stock options.
| COMPANY NAME | SYMBOL |
| Acxiom Corporation | ACXM |
| Adesa Inc. | KAR |
| Administaff Inc. | ASF |
| Advanced Energy Industries Inc. | AEIS |
| Advanced Micro Devices Inc. | AMD |
| Agere Systems Inc. | AGR |
| AirTran Holdings Inc. | AAI |
| AK Steel Holding Corp. | AKS |
| Alcoa Inc. | AA |
| Allergan Inc. | AGN |
| Amerigroup Corp. | AGP |
| AmerisourceBergen Corp. | ABC |
| Amkor Technology Inc. | AMKR |
| AmSouth BanCorp. | ASO |
| Analog Devices Inc. | ADI |
| Andrew Corp. | ANDW |
| Andrx Corp. | ADRX |
| Applera Corp. - Applied Biosystems | ABI |
| Applera Corp. - Celera Genomics | CRA |
| Applica Incorporated | APN |
| Apria Healthcare Group Inc. | AHG |
| Armor Holdings Inc. | AH |
| Ashworth Inc. | ASHW |
| Astoria Financial Corp. | AF |
| Avaya Inc. | AV |
| Avid Technology Inc. | AVID |
| Avocent Corp. | AVCT |
| Axcelis Technologies Inc. | ACLS |
| Ball Corp. | BLL |
| Bank of Hawaii Corp. | BOH |
| BankUnited Financial Corp. | BKUNA |
| BE Aerospace Inc. | BEAV |
| Benchmark Electronics Inc. | BHE |
| Big Lots Inc. | BLI |
| Biogen Idec Inc. | BIIB |
| BioLase Technology Inc. | BLTI |
(Table continues on next page.)
[page break]
Companies that have fast-forwarded stock options (page 2).
| COMPANY NAME | SYMBOL |
| BISYS Group Inc. (The) | BSG |
| Black Box Corp. | BBOX |
| Bombay Co. Inc. (The) | BBA |
| Borland Software Corp. | BORL |
| Boston Communications Group Inc. | BCGI |
| Bowater Inc. | BOW |
| BroadVision Inc. | BVSN |
| Brocade Communications Systems Inc. | BRCD |
| Brooks Automation Inc. | BRKS |
| Buckeye Technologies Inc. | BKI |
| CD Technologies Inc. | CHP |
| Cabot Microelectronics Corp. | CCMP |
| Cabot Oil Gas Corp. | COG |
| Cambrex Corp. | CBM |
| Captaris Inc. | CAPA |
| Career Education Corp. | CECO |
| Catalina Marketing Corp. | POS |
| CBS Corp. | CBS |
| Centene Corp. | CNC |
| Central Freight Lines Inc. | CENF |
| Chemed Corp. | CHE |
| Ciena Corp. | CIEN |
| Cincinnati Bell Inc. | CBB |
| Circuit City Stores Inc. | CC |
| Clarcor Inc. | CLC |
| Comcast Corp. | CMCSA |
| CommScope Inc. | CTV |
| Community Health Systems Inc. | CYH |
| Computer Task Group Inc. | CTG |
| Connetics Corp. | CNCT |
| Cooper Tire Rubber Co. | CTB |
| Corinthian Colleges Inc. | COCO |
| Corning Inc. | GLW |
| Credence Systems Corp. | CMOS |
| Cree Inc. | CREE |
| Cross Country Healthcare Inc. | CCRN |
| Cryolife Inc. | CRY |
| CTS Corp. | CTS |
| Cymer Inc. | CYMI |
| Dana Corp. | DCN |
| Datascope Corp. | DSCP |
| Dell Inc. | DELL |
| Dime Community Bancshares Inc. | DCOM |
| Donaldson Co. Inc. | DCI |
| Dow Jones Co. Inc. | DJ |
| Dura Automotive Systems Inc. | DRRA |
| Dycom Industries Inc. | DY |
| Electro Scientific Industries Inc. | ESIO |
| Enterasys Networks Inc. | ETS |
| Entravision Communications Corp. | EVC |
| Enzo Biochem Inc. | ENZ |
| Epicor Software Corp. | EPIC |
| EPIQ Systems Inc. | EPIQ |
| Escala Group Inc. | ESCL |
| Exabyte Corp. | EXBT.OB |
| ExpressJet Holdings Inc. | XJT |
| Fairchild Semiconductor International Inc. | FCS |
| Family Dollar Stores Inc. | FDO |
(Table continues on next page.)
[page break]
Companies that have fast-forwarded stock options (page 3).
| COMPANY NAME | SYMBOL |
| FEI Co. | FEIC |
| Fidelity Bankshares Inc. | FFFL |
| First Data Corp. | FDC |
| First Horizon National Corp. | FHN |
| Flagstar Bancorp Inc. | FBC |
| Flextronics International Ltd. | FLEX |
| Footstar Inc. | FTSTQ.PK |
| Fossil Inc. | FOSL |
| Foundry Networks Inc. | FDRY |
| Franklin Covey Co. | FC |
| Frontier Airlines Inc. | FRNT |
| Gamco Investors Inc. | GBL |
| Gander Mountain Co. | GMTN |
| Gannett Co. Inc. | GCI |
| Gateway Inc. | GTW |
| Gentex Corp. | GNTX |
| Gentiva Health Services Inc. | GTIVTX |
| Global Payments Inc. | GPN |
| Goody's Family Clothing Inc. | GDYS |
| Hanger Orthopedic Group Inc. | HGR |
| Haverty Furniture Companies Inc. | HVT |
| HCA Inc. | HCA |
| Hewitt Associates Inc. | HEW |
| Hillenbrand Industries Inc. | HB |
| Hooper Holmes Inc. | HH |
| Horace Mann Educators Corp. | HMN |
| ICU Medical Inc. | ICUI |
| IDT Corp. | IDT |
| ImClone Systems Inc. | IMCL |
| InFocus Corp. | INFS |
| Ingersoll-Rand Co. Limited | IR |
| International Paper Co. | IP |
| International Rectifier Corp. | IRF |
| Intersil Corp. | ISIL |
| Inter-Tel Inc. | INTL |
| Intevac Inc. | IVAC |
| Irwin Financial Corp. | IFC |
| ITT Educational Services Inc. | ESI |
| IVAX Corp. | IVX |
| Jabil Circuit Inc. | JBL |
| Jack Henry Associates Inc. | JKHY |
| JDA Software Group Inc. | JDAS |
| JDS Uniphase Corp. | JDSU |
| K2 Inc. | KTP |
| Keane Inc. | KEA |
| Keithley Instruments Inc. | KEI |
| Kellwood Co. | KWD |
| Knight-Ridder Inc. | KRI |
| Korn/Ferry International | KFY |
| Lattice Semiconductor Corp. | LSCC |
| LeapFrog Enterprises Inc. | LF |
| Learning Tree International Inc. | LTRE |
| Libbey Inc. | LBY |
| Linear Technology Corp. | LLTC |
| LTX Corp. | LTXX |
| Lucent Technologies Inc. | LU |
| Magnetek Inc. | MAG |
(Table continues on next page.)
[page break]
Companies that have fast-forwarded stock options (page 4).
| COMPANY NAME | SYMBOL |
| Martek Biosciences Corp. | MATK |
| MasTec Inc. | MTZ |
| McKesson Corp. | MCK |
| Mentor Corp. | MNT |
| Mercury Computer Systems Inc. | MRCY |
| Merit Medical Systems Inc. | MMSI |
| Metro One Telecommunications Inc. | INFO |
| MGI Pharma Inc. | MOGN |
| Microchip Technology Inc. | MCHP |
| Micron Technology Inc. | MU |
| Microsemi Corp. | MSCC |
| Millipore Corp. | MIL |
| MIVA Inc. | MIVA |
| MKS Instrument Inc. | MKSI |
| Mobile Mini Inc. | MINI |
| Monaco Coach Corp. | MNC |
| Monster Worldwide Inc. | MNST |
| MRO Software Inc. | MROI |
| Multimedia Games Inc. | MGAM |
| NCO Group Inc. | NCOG |
| Neurocrine Biosciences Inc. | NBIX |
| New York Community Bancorp Inc. | NYB |
| New York Times Co. (The) | NYT |
| News Corp. | NWS |
| Northrop Grumman Corp. | NOC |
| Novatel Wireless Inc. | NVTL |
| Novellus Systems Inc. | NVLS |
| Noven Pharmaceuticals Inc. | NOVN |
| O'Charley's Inc. | CHUX |
| Old National Bancorp | ONB |
| Orbital Sciences Corp. | ORB |
| Osteotech Inc. | OSTE |
| Pactiv Corp. | PTV |
| Palm Inc. | PALM |
| PalmSource Inc. | PSRC |
| Parexel International Corp. | PRXL |
| PC Connection Inc. | PCCC |
| PCTEL Inc. | PCTI |
| Performance Food Group Co. | PFGC |
| Pericom Semiconductor Corp. | PSEM |
| Photon Dynamics Inc. | PHTN |
| Plantronics Inc. | PLT |
| Plexus Corp. | PLXS |
| PMC-Sierra Inc. | PMCS |
| PMI Group Inc. (The) | PMI |
| Power-One Inc. | PWER |
| PRG-Schultz International Inc. | PRGX |
| Provident Bankshares Corp. | PBKS |
| PSS World Medical Inc. | PSSI |
| Quovadx Inc. | QVDX |
| Qwest Communications International Inc. | Q |
| RadiSys Corp. | RSYS |
| Range Resources Corp. | RRC |
| Remington Oil and Gas Corp. | REM |
| RF Micro Devices Inc. | RFMD |
| Rogers Corp. | ROG |
| Rudolph Technologies Inc. | RTEC |
| Russ Berrie and Co. Inc. | RUS |
(Table continues on next page.)
[page break]
Companies that have fast-forwarded stock options (page 5).
| COMPANY NAME | SYMBOL |
| ST Bancorp Inc. | STBA |
| Safeco Corp. | SAFC |
| Sanmina-SCI Corp. | SANM |
| SBS Technologies Inc. | SBSE |
| SFBC International Inc. | SFCC |
| Sharper Image Corp. | SHRP |
| Shuffle Master Inc. | SHFL |
| Silicon Laboratories Inc. | SLAB |
| Sinclair Broadcast Group Inc. | SBGI |
| Skyworks Solutions Inc. | SWKS |
| Solectron Corp. | SLR |
| Sports Authority Inc. (The) | TSA |
| SPSS Inc. | SPSS |
| Standard Register Co. (The) | SR |
| StarTek Inc. | SRT |
| Sun Microsystems Inc. | SUNW |
| Susquehanna Bancshares Inc. | SUSQ |
| Swift Transportation Co. Inc. | SWFT |
| Sykes Enterprises Inc. | SYKEE |
| Symbol Technologies Inc. | SBL |
| Tech Data Corp. | TECD |
| Tempur-Pedic International Inc. | TPX |
| Teradyne Inc. | TER |
| Tetra Tech Inc. | TTEK |
| Tibco Software Inc. | TIBX |
| Trans World Entertainment Corp. | TWMC |
| Trex Co. Inc. | TWP |
| Triarc Companies Inc. | TRY |
| Tribune Co. | TRB |
| TriQuint Semiconductor Inc. | TQNT |
| Triumph Group Inc. | TGI |
| Ultratech Inc. | UTEKK |
| Unifi Inc. | UFI |
| Unisys Corp. | UIS |
| United Bankshares Inc. | UBSI |
| Univision Communications Inc. | UVN |
| UST Inc. | UST |
| UTStarcom Inc. | UTSI |
| Veeco Instruments Inc. | VECO |
| VeriSign Inc. | VRSN |
| Vitesse Semiconductor Corp. | VTSS |
| Waddell Reed Financial Inc. | WDR |
| Waste Connections Inc. | WCN |
| Waste Management Inc. | WMI |
| Waters Corp. | WAT |
| Wellman Inc. | WLM |
| Wendy's International Inc. | WEN |
| Whole Foods Market Inc. | WFMI |
| Wild Oats Markets Inc. | OATS |
| Wireless Facilities Inc. | WFII |
| Wisconsin Energy Corp. | WEC |
| Wolverine Tube Inc. | WLV |
| Xerox Corp. | XRX |
| X-Rite Inc. | XRIT |
(End of table.)
-
How to Turn Your Retirement Dreams into Reality (Despite Your Fears)Stressing over shrinking savings, rising healthcare costs, or losing your purpose can give you chills, but smart money moves can lead to financial freedom and a happy retirement.
-
Figma IPO: Should You Buy FIG Stock?The Figma IPO has plenty of buzz building around it, with the design software company expected to start trading next week.
-
How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
-
Fed Cuts Rates Again: What the Experts Are Saying
Federal Reserve The central bank continued to ease, but a new administration in Washington clouds the outlook for future policy moves.
-
Fed Goes Big With First Rate Cut: What the Experts Are Saying
Federal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia EarningsMarkets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in FocusNvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing HighThe Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
