Stock Options & the New Rules of Corporate Accountability

This second edition of Stock Options and the New Rules of Corporate Accountability examines the hot-button issue of executive compensation and proposes new methodologies and techniques for better aligning stock options, performance rewards and accounting. First published by McGraw-Hill in the fall of 2003, this new edition has been re-examined and updated to include the implications of regulatory changes instituted by the Financial Accounting Standards Board. Author Don Delves, an executive compensation authority, describes the importance and history of the stock option expensing issue and puts it into a broader context, an appreciation of which is necessary for understanding the new rule and its implications. His words breed optimism that the new accounting rule and other dramatic changes in corporate governance over the last three years will lead to greatly improved accountability, far more effective incentive design, vastly improved corporate governance and creative compensation solutions we have not yet imagined. He also delineates many of the current problems with executive compensation and the decisions made by board compensation committees, and discusses a variety of solutions, recommendations and a few admonitions for boards and management for making executive pay and corporate governance far healthier and more effective.

Donald P. Delves, CPA, is founder and president of The Delves Group, a consulting firm that helps companies improve employee effectiveness and performance by assessing and redesigning how they are organized, directed and rewarded. Delves is a highly sough-after consultant and speaker on corporate governance and executive pay and performance. With more than 20 years experience in consulting with major corporate boards and executive teams across the country, Delves is a frequently interviewed source and cited as an expert in major media including Fortune, The Wall Street Journal and National Public Radio. He also has testified before the U.S. Senate and Financial Accounting Standards Board on the hotly debated issue of stock option expensing.