[Congressional Record (Bound Edition), Volume 148 (2002), Part 10]
[Senate]
[Page 13251]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             STOCK OPTIONS

  Mr. CLELAND. Mr. President, in this time of seemingly endless stories 
of corporate fraud and mismanagement, I would like to take the 
opportunity to salute a bold step recently taken by one of the world's 
most respected corporations. As you know, the Coca-Cola Company's world 
headquarters is located in Atlanta, GA.
  The Coca-Cola Company announced on Sunday that it would expense the 
cost of all stock options the company grants, beginning with options to 
be granted in the fourth quarter of 2002.
  I commend CEO Douglas Daft and the leadership of the Coca-Cola 
Company on their decision. Stock options are indeed a form of employee 
compensation and their characterization as a balance sheet expense will 
provide investors with a clearer picture of Coca-Cola's fiscal health.
  Sunday's announcement is indicative of Coca-Cola's ongoing commitment 
to economic integrity and fairness. With this new policy, the company 
will be able to design whatever kind of options it believes will both 
best motivate employees and more align their interests with those of 
share owners, without regard for the options' accounting effects.
  While Coca-Cola is the first company of its size to take this 
important step, I predict it will not be the last. As other 
corporations follow Coke's lead, investor confidence in our markets 
will grow once again.

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