[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 259 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 259

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 28 (legislative day, January 5), 1993

   Mr. Levin introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 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 120 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 120 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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