Man bites dog

Finally, another NYT editorial that I can agree with.   This one calls on Congress to refrain from overrulling the FASB decision requiring companies to begin expensing employee stock option grants in 2005.   Their editorial cites an analysis by Fortune magazine (the business magazine of choice for mid-level corporate drones) showing that if eBay had expensed options for the five-year period from 1999 to 2003, its cumulative net income would have been $13 million rather than the $840 million it reported.   For a more comprehensive look at the earnings impact of excluding employee compensation paid in the form of stock options, see this analysis I did back in February of this year.