Stock Option Expensing: A sleeper issue

This article at SeattleTimes.com by Mark Schwanhausser–“Accounting rules threaten worker stock-buying plans“–highlights how FASB’s proposals to expense stock options might be the death knell for employee stock purchase plans (“ESPPs”). The article reports that 10 to 15 million workers could potentially lose their benefits under these types of plans, if FASB’s proposals are adopted, and that executives at companies are re-examining their ESPPs to determine the effect that ESPPs could have on profits. One bank executive apparently learned, according to the article, that the bank’s ESPP could potentially wipe out $20 million in profits under the proposed accounting changes.