Lieberman Bill Would Encourage Broad-Based Options

Senator Joseph Lieberman (D-CT), along with Senator Barbara Boxer (D-CA) has introduced the "Rank and File Stock Options Act" (S. 2877). The bill has three main provisions:

• Companies could not take a tax deduction for the exercise of stock options unless at least half the value of the options available in the company go to employees making under $90,000 per year.
• Shareholders would have to approve all stock option plans.
• The SEC would have to issue rules requiring top executives to hold shares a set period of time and to forbid them from selling shares while still employed by the issuing company.