Stock options have been in the news over the past few weeks, for all the wrong reasons. Many corporations have been accused of backdating the options.
Senator Charles Grassley (R-IA), head of the Senate Finance Committee, isn’t happy about this. He told Reuters, “If the tax laws are inadequate on stock options backdating, I want to beef them up.” Grassley has scheduled a hearing on September 9th to discuss the options mess.
>From our vantage point expect tightening of the rules and regulations dealing with stock options, and a likelihood that fewer options will be issued in the future.