Cisco Proposes New Way to Value Employee Options Source: Wall Street Journal, 12 May 2005 Cisco Systems Inc., in a bid to reduce the impact of a looming accounting shift, has proposed a novel way to value employee stock options -- by offering to Wall Street financial instruments designed to mimic employee options. A Cisco spokesman confirmed that the big San Jose, Calif., maker of computer-networking equipment had recently proposed to the Securities and Exchange Commission creating a “market instrument” that would parallel employee options. The spokesman said Cisco is waiting to hear from the SEC. The goal of the plan is to create a market to deter-mine a value for options, an issue that has vexed ac-counting and securities regulators for more than a decade. The Financial Accounting Standards Board last year adopted a rule requiring publicly traded companies to begin recording the value of employee options as an expense in their financial statements. Most large companies won’t have to implement the
This is the end of the preview. Sign up
access the rest of the document.