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Technology Stocks : Intel Corporation (INTC)
INTC 36.20+0.1%3:59 PM EST

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To: rkral who wrote (178366)6/23/2004 6:44:03 PM
From: Lizzie Tudor  Read Replies (1) of 186894
 
I verified at 2 companies that I work with that the 15% discount for ESPPs is managed with options now. It seems to be the standard approach, and coincidentally as soon as microsoft started to expense options, lo and behold, their stock purchase plan was modified for only a 10% discount vs. 15%.

3. What is stock option expensing? Under FASB's proposed new rule, companies would be required to expense/reduce earnings for the value associated with granting stock options/ESPP. If the rules are enacted, any company offering stock options/ESPP plans will see a reduction in there reported earnings which may detrimentally affect the company's valuation/stock price. Historically, no such expense/earnings reduction has been required.

The AEA is pushing a letter writing campaign for options and they are clearly stating on their site that ESPPs are in jeopardy with stock option expensing.
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