FASB Postpones Stock Option Decision for One Year -- A Victory for California

The Financial Accounting Standards Board, which was considering treating stock options as compensation for tax purposes, announced recently that it will postpone its decision for one year and will delay the deadline for its final proposed rules to March 31, 1995. The move spares many small, start-up companies from losing one of their most valuable employment incentives. California has a high percentage of such start-up companies and stands to gain considerably from this action. Rep. Anna Eshoo of San Jose has been very active on this issue. The California Institute has provided data to the Congressional delegation, FASB and others, and it will continue to do so.

Bulletin No. 3 -- August 11, 1994