28 July 2005: SEC nominee will support stock option expensing
by IAS PLUS

The US Senate Committee on Banking, Housing and Urban Affairs held a confirmation hearing on 26 July 2005 on President Bush's nomination of Congressman Christopher Cox as Chairman of the US Securities and Exchange Commission. Mr. Cox would replace William H. Donaldson, who resigned effective 30 June 2005. Although Mr. Cox did not express a view on the expensing of the cost of share-based payments to employees (stock options) in his Prepared Statement (PDF 152k), in response to questions he said he strongly supported expensing share-based payments and would not seek to stop the implementation of FASB Statement 123R Share-Based Payment. On two occasions in the past, Congressman Cox had co-sponsored legislation that would block the implementation of a FASB standard on share-based payment.