[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2878 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2878

To require that stock option compensation paid to corporate executives 
     be recorded as a compensation expense in corporate financial 
                              statements.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 5, 1993

  Mr. Bryant introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To require that stock option compensation paid to corporate executives 
     be recorded as a compensation expense in corporate financial 
                              statements.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Corporate Executives' Stock Option 
Accountability Act''.

SEC. 2. STOCK OPTION COMPENSATION.

    Section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n) 
is amended by adding at the end the following new subsection:
    ``(h) Stock Option Compensation.--
            ``(1) In general.--The Commission shall require an issuer 
        to recognize as an expense in financial statements provided to 
        its security holders the fair value of any stock options 
        granted by such issuer to its directors, officers, senior 
        executives, or other persons in exchange for services.
            ``(2) Fair value.--For purposes of paragraph (1), the 
        Commission shall specify, by rule or regulation, the method for 
        determining the fair value of such stock options.''.

SEC. 3. EFFECTIVE DATE.

    Not later than one hundred and twenty days after the date of 
enactment of this Act, the Commission shall promulgate final rules and 
regulations necessary to carry out this Act, unless the Securities and 
Exchange Commission certifies that the Financial Accounting Standards 
Board has, prior to the expiration of one hundred and twenty days after 
the date of enactment of this Act, promulgated generally accepted 
accounting principles which accomplish the purposes of this Act.

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