Skip to content

Enzi wrote to SEC Chairman William Donaldson to follow up on his March 7 letter to the Financial Accounting Standards Board (FASB) on stock option expensing.

The senators said that expensing cannot occur without accurate valuation and there is no accurate valuation method today. Before accounting standard-setters rush headlong into something that will harm investors and eviscerate broad-based stock option plans, there needs to be an evaluation of the unique information available from company estimates over the course of the past decade.

"The SEC has the data that can determine whether Black-Scholes estimates are accurate or not and we owe it to investors to get this right, and the study we've asked of the SEC will help make sure that happens," said Enzi.

To read the entire text of the letter --
please click on this link.