First, it considers the executive stock option plans in effect and then
employee stock option plans in effect.
Employee stock option plans should be aligned to specific business environments and subjected to sound business controls.
(5.) See Murphy (1999) for a discussion of the structure of
employee stock option plans.
Comment: Measuring the Compensation Element in
Employee Stock Option Plans. Journal of Accounting, Auditing and Finance, 3(1), 67-69.
There are two types of
employee stock option plans, noncompensatory and compensatory, depending on the purpose of the plan.
Practitioners' understanding of how
employee stock option plans (ESOPs) operate within S corporations continues to evolve.
The ED, which would have required expense recognition for virtually all
employee stock option plans, met with vociferous opposition in comment letters, public hearing testimony and the press.
Shares repurchased in this programme will be held in treasury for reissue for various corporate purposes, including
employee stock option plans.
Stock will be bought back regularly as per market conditions and other factors, which will be held as treasury stock and available for general corporate purposes such as
employee stock option plans, the company mentioned.
Most (if not all)
employee stock option plans should be drafted to allow for both ISOs and non-ISOs to be granted under the same plan.
The controversy that led to the proposed changes involves the measurement and recognition of compensation expense for
employee stock option plans. (For more on the historical development of the changes, see "Stock Compensation Accounting," by Robert W.
The success of some companies in resolving the dilemma is in direct correlation with their understanding of the complexities surrounding stock compensation, their subsequent-structuring of
employee stock option plans, and the criteria used by the SEC in reviewing prospectuses that contain
employee stock option plans.
