Coca Cola has decided to start reporting employee stock options as an expense, despite the fact that they’re not required to do so. Warren Buffett makes the point that the fact that stock options are currently a reporting loophole skews their usage as a form of compensation. If they had to be reported like every other type of compensation, corporations could make the decision as to which type of compensation to use purely based on how it affects employee performance.
Drink Coca Cola
Coca Cola has decided to start reporting employee stock options as an expense, despite the fact that they’re not required to do so. Warren Buffett makes the point that the fact that stock options are currently a reporting loophole skews their usage as a form of compensation. If they had to be reported like every other type of compensation, corporations could make the decision as to which type of compensation to use purely based on how it affects employee performance.
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