Saul Hansell reports on Amazon’s earnings report yesterday and, more interestingly, their decision to begin expensing stock options.
Amazon’s chief executive, Jeffrey P. Bezos, said the company was mainly looking for more flexibility in how it created incentive programs for employees. Right now, stock option grants have to meet strict rules if they are not to be charged as expenses. … In the future, the company may look to grant options based on the average of its stock price over 30 days, Mr. Bezos said, or to use more unusual structures, like incentives based on the difference between its shares and those of other companies.
With its announcement yesterday, Amazon becomes the first major technology company to adopt the policy of expensing stock option grants.