~ About David Dreier
~ The 26th District
~ 21st Century Economy
- Science & Technology
- International Trade
- Economic Growth
~ Sponsored Legislation
~ Local Initiatives
~ Constituent Services
~ Visiting Washington
~ Monthly Commentary
~ News Releases
~ Committee on Rules
~ In the Press
~ Currently on the Floor
~ The House This Week
Washington Office |
233 Cannon HOB
Washington, DC 20515
(202) 225-2305
|
| District Office |
510 East Foothill Boulevard
Suite 201
San Dimas, CA 91773
Office (909) 575-6226
Toll Free (888) 906-2626
Fax (909) 575-6266
|
|
- Privacy Policy - |
|
Stock Option Accounting Reform Act
Passes House
July 20, 2004
WASHINGTON, DC- Congressman David Dreier (R-San Dimas), Chairman of the
House Rules Committee, hailed the passage of legislation today that will help
keep in place a key tool for economic growth and provide investors with better
information about the financial health of the companies in which they are
invested. The Stock Options Accounting Reform Act,
H.R. 3574,
was approved with overwhelming bipartisan support,
312-111.
“If high growth industries lose their flexibility to use broad-based stock
options, we all lose,” Dreier said. “Stock options align the employee interest
with the company interest, and that produces a motivated worker. No matter
what area of technology you look at, you will find that the common thread to a
company’s success has been employee stock options. Without that flexibility,
we would lose a key motivator for would-be entrepreneurs and existing
innovative companies to take risks and transform new ideas into industry. New
industries create new jobs, higher wages, and increased standards of living.”
The legislation approved today will ensure that growing businesses can
continue using stock options as a critical tool to encourage entrepreneurship,
innovation, and growth by delaying regulations proposed by the Federal
Accounting Standards Board (FASB). Specifically, it will also: require the
immediate expensing of all stock options for a company’s top 5 executives;
forbid the expensing of options given to the rest of a company’s employees
until accountants can devise more accurate methods to measure their cost;
exempt small businesses from the top five expensing requirement for three
years after they go public; and, forbid the SEC to recognize any new expensing
accounting standard until FASB devises a “tuning up” mechanism and the
Departments of Labor and Commerce complete an economic impact study.
Dreier applauded the work of Financial Services Chairman Mike Oxley (R-OH) and
Subcommittee on Capital Markets, Insurance and Government Sponsored
Enterprises Chairman Richard Baker (R-LA) for their leadership on the issue.
He also thanked Energy and Commerce Chairman Joe Barton (R-TX), as well as his
California colleague Anna Eshoo (D-CA), for their work on the legislation.
“Economic growth should be a bipartisan priority,” Dreier said. “Today’s vote
makes clear that we can work together on the issues critical to the success of
our economy and the future for all Americans.”
|
|