Companies Will Have to Disclose Stock Buybacks for Option Programs

Under the new accounting rules to come into affect this year, public companies will have to disclose how much money they intend to spend in the following year buying back shares to satisfy stock option exercises. The purpose is to give investors an idea of to what extent the company is paying for options through cash versus dilution. The number can only be an estimate, of course, because future stock prices and intentions are necessarily speculative.