Stealth Compensation of Corporate Executives: Federal Treatment of Stock Options : Hearing Before the Subcommittee on Oversight of Government Management of the Committee on Governmental Affairs, United States Senate, One Hundred Second Congress, Second Session, January 31, 1992, Volume 4U.S. Government Printing Office, 1992 - 190 pages |
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Common terms and phrases
accounting for stock accounting principles Accounting Standards Board amount average awards benefits Carl Levin cash compensation CEO pay Chairman common stock companies company's compensation expense compensation plans cost date of grant directors dividend employee stock options equity instrument executive compensation exercise options exercise price fair market value fair value FASB Financial Accounting Standards fixed stock option grant date Hay Group incentive stock options income increase investor issue LEISENRING market price marking to market measurement date million minimum value models Non-Qualified Norr number of shares Opinion 25 option gains option price Oversight of Government percent performance period profit proxy statement receive recognized SCHUETZE section 83 Senator LEVIN Senator PRYOR stock appreciation rights stock compensation stock option grants stock option plans stock ownership stock price stockholders strike price tax deduction taxable Testimony THRASHER tion total shareholder return variable plans vesting date
Popular passages
Page 134 - The amount of all items of gross income shall be included in the gross income for the taxable year in which received by the taxpayer, unless, under methods of accounting permitted under section 41, any such amounts are to be properly accounted for as of a different period.
Page 135 - Income although not actually reduced to a taxpayer's possession is constructively received by him in the taxable year during which it is credited to his account, set apart for him, or otherwise made available so that he may draw upon it at any time, or so that he could have drawn upon it during the taxable year if notice of intention to withdraw had been given. However, income is not constructively received if the taxpayer's control of its receipt is subject to substantial limitations or restrictions.
Page 142 - Liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
Page 135 - The amount of any item of gross income shall be included in the gross income for the taxable year in which received by the taxpayer, unless, under the method of accounting used in computing taxable income, such amount is to be properly accounted for as of a different period.
Page 159 - Granting restricted stock options would motivate employees to do a better job and find better ways to do the job. A stock option only has value to the employee if the price of the company's stock increases through growth in its sales and profits. Therefore, options give employees a strong incentive to find ways to expand the company's business and conduct that business more efficiently. Business growth creates more new jobs. Increased efficiency results in greater productivity.
Page 152 - Compensation for services that a corporation receives as consideration for stock issued through employee stock option, purchase, and award plans should be measured by the quoted market price of the stock at the measurement date less the amount, if any, that the employee is required to pay...
Page 123 - No. 1 (Section 101): . . . the Commission intends to continue its policy of looking to the private sector for leadership in establishing and improving accounting principles and standards through the FASB with the expectation that the body's conclusions will promote the interests of investors.
Page 134 - SARs exercisable within five years. Two years later when the stock price increases to $50 a share, you exercise the SAR and receive $2,000. You are taxed when you receive...
Page 108 - The Honorable Carl Levin Chairman, Subcommittee on Oversight of Government Management Committee on Governmental Affairs United States Senate Dear Mr.