Options Expensing Foes Make Some Progress on Legislation to Limit New Rules

Opponents of expensing stock options have made some headway in the House on legislation to limit expensing to options for the top five executives of public companies. House Minority Leader Nancy Pelosi (D-CA) has joined 39 other members as a sponsor for H.R. 3754, a mirror companion to the Senate version (S. 1890). The House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held hearings on the bill March 3. Leaders from technology companies testified for the legislation, but major accounting firms opposed it. Michael Oxley (R-OH), chair of the Financial Services Committee (of which the subcommittee is a part) has said he is reserving judgment on the bill. A vote this summer is possible.

While more progress on the House side is possible, the Senate so far appears to be an insurmountable barrier. Senate Banking Committee chair Richard Shelby (R-AL) and ranking minority member Paul Sarbanes (D-MD) both oppose the bill, which would have to go through their committee. No hearings have been held.