Quick Access:  Bo Brustkern  |  720.259.0472

Auctioning Options

 

SubscribeComments

David Reilly appeared on C2 of the WSJ today with an article on the SEC's final clearance for Zions Bancorp to use an auction process to value employee stock options. It's a novel approach that Zions will presumably take to market. Potentially a nice option for publicly traded companies to keep their FAS123R expense down.

But frankly, why go to all the trouble? Do analysts really factor in non-cash expenses such as the expensing of stock options on the income statement? Perhaps I'm naive, but I figured everyone would factor them out. Perhaps I am too taken with Martin Whitman's arguments against the primacy of the income statement.

Add A Comment

Be nice.

 

Additional Articles

Useful Links

Circular 230 Disclosure

To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in Arcstone communications, unless expressly stated otherwise, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matter(s) addressed herein.

This is our way of saying that Arcstone does not give tax advice. We provide valuations, not tax advice.