Total BS, 6ind. Stock options that are exercised are an expense, just like salaries are an expense to a corporation. The higher expenses are, the smaller the profits on the books. Stock options that are not yet exercised are called liabilities. In accounting, liabilities reduces assets. So, why doesn't Chevron account for stock options as liabilities on their books. Answer: If they did, the stockholders would see the true level of expenses in the form of stock options. Also, the stockholders would see it as it truely is... a hit to the stock price.
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5gdg, Stock options don't actually cost the companies money. They make money by selling stock. It's just less money than if they sold it on a stock exchange. That is not an actual loss that goes against the bottom line. But under the current system, they show this as a loss on the balance sheets which means the companies pay less corporate taxes.
Only if you want publically traded companies to accurately report their profits and losses.
No, but that's the stupid law.
Yeah, I got those options in 2016. Worth over 200k at current price. But alas, I was let go in reorganization and forfeited the lot! It's a long term incentive plan. Was no my choice to leave. Oh well.
-1ofq, it brings to mind several axioms. It's good to be King, Those who own the gold make the golden rules.
2016 salary action was slim & none but in 2016 PSG 26 rec' 7000 shares, 27 14000 , 28 21000 & so on. Issued at $83 per share options can be exercised on Jan.27 @ market price or roll the dice & hang on.
So much for sharing the pain equally during the downturn in oil prices. Options granted in 2016 were double in the number rec'd in previous years.
Go figure
OP, many corporations already handle stock options as a liability on the books. Chevron stockholders should demand our Board of Directors and executive management to book the value of the stock option liability when it is issued and then adjusted on the books again once the option is taken or forfeited. This type of accounting is appropriately responsible and correctly states the true net value of the company's stock.