It had seemed that hubristic executives were, like, so 1990s. Maybe not. Consider high-flying executive Henry T. Nicholas III, former Broadcom Corp. CEO, who was already in trouble for allegedly backdating stock options. Now a federal court in Santa Ana, Calf., has unsealed indictments against Nicholas accusing...
Talk about pay inequities. If you are a CEO at a small to middle-sized firm you probably got a puny 2 percent pay raise last year. Yet if you were a big shot at a Standard & Poors 500 firm, you fared a heck of a lot...
Receiving options for your company's stock can be an incredible benefit. Even after a few years of moderate growth, stock options can produce a handsome return. Use this tool to determine the value of your stock options for the next one to twenty-five years.
This tool calculates the value of your employee stock options after deducting income and Federal Insurance Contributions Act FICA taxes. An option is a derivative contract since its value is derived from the share price of the underlying stock. The tool assumes you exercise your options for shares of your...
Many companies issue annual stock option grants to their employees. Receiving a stream of stock options over a period of years can be an incredible benefit. Use this tool to project how much a series of annual stock option grants could be worth to you.
When your employee stock options are "In-the-money" (that is, the stock price is greater than your grant price), you can choose one of three basic sell strategies: Exercise your options, then hold the stock for sale at a later date exercise and hold; hold your options and exercise them later...
We're going to see a lot of 2007 wrap-up articles and blogs over the next couple of weeks (like our recently posted Best Productivity Tips of 2007) not to mention predictions for 2008. It's what you do in December, and we embrace it. BusinessWeek churned out a list of the...
Stock options are designed to encourage executives to focus on the needs of the shareholder. Giving the CEO a stake in the company's market performance sounds like an elegant and effective way to make sure his or her attention is in the right place. But a study from management professors...
The SEC opened an investigation yesterday into Take-Two Interactive Software, maker of the "Grand Theft Auto" video game series, over its past stock-option grants practices. In February, Take-Two's CEO pled guilty to criminal charges over backdating options, and became the first ex-CEO to do so. Take-Two said reviews of its...
The Tribune Co. said today it accepted real estate magnate Sam Zell's bid to take the company private, and it plans to sell the Chicago Cubs after the 2007 baseball season. The deal values Tribune, publisher of Los Angeles Times and Chicago Tribune, at around $8.2 billion and is structured...
Airbus' A380 superjumbo jet, the world's largest passenger plane, made its U.S. debut today, as two of the jets landed in New York and Los Angeles. Airbus designed the aircraft to challenge Boeing's command in the large plane market. But due to several delays, Airbus has suffered billion dollars of...
With daylights savings time starting three weeks early this year, companies are scrambling to reset their hardware and software systems to sync up with the time change. The new changes are causing IT headaches reminiscent of the Y2K bug in 2000, and may impact data-centers, desktop computers, and...
I'm accumulating new experiences left and right. Last week Aubrey Cattell from Cooley Godward took me to my first NHL hockey game at the Colorado Avalanche rink. It was lots of fun -- you can't beat $150 seats, cheap stadium food, and stock option conversation to the background of cross...
Managers responsible for capital investment decision making need valuation models that can navigate both corporate finance and competitive strategy to generate well-grounded prices. Real options provide the firm with flexibility to adapt to changes in its environment. The dynamic nature of real options in the new economy makes them more...
The Financial Accounting Standards Board FASB recently mandated the expensing of the fair value of employee stock options ESOs via FAS 123-R. In anticipation of FAS 123-R, between March 2004 and November 2005, several firms accelerated the vesting of ESOs to avoid recognizing a fair value based ESO expense in...
Although stock-option grants have become more costly since expensing them was mandated, they still might be a good deal. Since the Financial Accounting Standard Board and the International Accounting Standards Board mandated expensing of stock options, companies have been relying less on stock-option grants in their executive compensation plans. A...
David Ayre approaches employee communications like a marketer approaches an advertising campaign. Pepsi, like many companies, realized it eventually would be required to expense stock options and got to work on developing a new compensation program. This paper describes how getting information out early - even before all of the...
The debate over the expensing of employee stock options ESOs has been intense in recent years. The two central question of this debate - namely, whether employee stock options should be expensed in the issuing firm's GAAP accounts, and if so, which quantitative model should be used for that purpose...
JPMorgan's program allows workers to get value out of worthless options and could benefit companies facing new rules on expense reporting. Some companies are beginning to doubt the value of stock options as a compensation tool, and it's easy to see why. There has been a spate of lawsuits involving...
The International Accounting Standards Board IASB recently introduced the International Financial Reporting Standards 2 (IFRS 2) which requires an option-pricing model be applied to employee stock options ESOs) to estimate their fair value at the grant date. IFRS 2 also requires that the fair value of employee-based compensation be reported...
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