Accounting for Options

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.

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Here's a list, provided by the Corporate Library, of companies that have fast-forwarded stock options.

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Companies that have fast-forwarded stock options (page 2).

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Companies that have fast-forwarded stock options (page 3).

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Companies that have fast-forwarded stock options (page 4).

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Companies that have fast-forwarded stock options (page 5).

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