February 1, 2005

Broad-Based Stock Equity Plans: Will the Shoe Still Drop?

NCEO founder and senior staff member

Surveys and conventional wisdom have suggested that the coming of the new equity compensation accounting rules would quickly lead many companies with broad-based equity plans to eliminate them or cut back on them sharply. So far, however, it has been difficult to turn up specific examples of companies that have actually taken that step (let us know if you know any-we're trying to compile a list for future research on how these companies perform). It is very possible, of course, that companies are waiting until the rules actually come into effect, or for a few others to take the fist step. But some experts believe the plans will survive much better than the more dire predictions expected.