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.
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 |
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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 |
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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 |
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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 |
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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 |
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