Stock Options Aren't the Only Option

Tech companies are panicked at the FASB recommendation to drop options, but they shouldn't be: Better incentives exist

Want to start a fight in Silicon Valley? Just say stock options should be counted as an expense on the income statement. Technology executives will shriek that such a move -- suggested by the Financial Accounting Standards Board last month -- will slash profits and force them to cut options grants to most of the 90% of employees who now get them. That will numb their motivation, execs say, and ultimately hurt innovation.

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