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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Cactus Jack who wrote (54384)	8/12/2002 3:41:24 PM
From: Dealer	Read Replies (1) \| Respond to of 65232

PeopleSoft will not expense stock options --CFO PLEASANTON, Calif., Aug 12 (Reuters) - Business software maker PeopleSoft Inc.(NasdaqNM:PSFT - News) on Monday said it would not change the way it accounts for employee stock options by treating them as an expense. ADVERTISEMENT "We have no plans to expense options," PeopleSoft Chief Financial Officer Kevin Parker told Reuters. Eighty percent of PeopleSoft's 8,500 employees have been granted stock options, the company said. Senior management holds less than 12 percent of the total. With Monday's announcement, executives at Pleasanton, California-based PeopleSoft joined top brass at large Silicon Valley technology shops, such as Cisco Systems Inc.(NasdaqNM:CSCO - News) and Intel Corp.(NasdaqNM:INTC - News), in speaking out against a push that would require companies to account for stock options as an expense. "We do not want to come across as being neutral or ambivalent about it," Parker said. Expensing options would likely lower profits at many technology companies, which use stock options to lure employees. Parker said his company's stock option program encourages innovation, which helps to drive shareholder value. In addition, Parker said that he and company Chief Executive Craig Conway will soon file a document in which they will personally vouch for the company's reported numbers. The U.S. Securities and Exchange Commission has set an Aug. 14 deadline requiring chief executives of nearly 1,000 major companies to swear by the accuracy of their reported numbers in the wake of several high-profile corporate collapses due to shoddy or misleading accounting practices. PeopleSoft shares were down 26 cents at $16.64 in afternoon trade.