Heads in the sand…

May 20, 2004

Yesterday, Intel (INTC) shareholders narrowly approved a shareholder resolution to force the chip giant to start expensing stock options, something that over 100 S&P 500 companies already do and which FASB hopes to mandate, assuming that pesky Congressmen don’t get in their way. But Intel executives said yesterday that they had no plans to start expensing options, despite their shareholders wishes. Intel’s CFO told The New York Times that he thought Intel investors had made the wrong decision by approving the shareholder resolution. Last year, Intel won a similar proposal, also by a narrow vote, and perhaps executives were hoping to pull it off again this time around. Of course, given the fact that Intel (or any other public company for that matter) is not required to act on a shareholder proposal no matter what the final vote, the company can continue to pretend that the cost of stock options just doesn’t exist.

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