Coke's stock options to count as expenses ATLANTA (WABE) - The Coca-Cola Co. will expense the cost of all stock options the company grants, beginning with options to be granted in fourth quarter 2002.
Management has concluded that stock options are a form of employee compensation expense and therefore it is appropriate that these costs be reflected in our financial results, said Doug Daft, Coca-Cola chairman and CEO. Our management s determination to change to the preferred method of accounting for employee stock options ensures that our earnings will more clearly reflect economic reality when all compensation costs are recorded in the financial statements.
All future employee stock option grants will be expensed over the stock option vesting period based on the fair value at the date the options are granted. The company expects minimal financial impact in the current year from the adoption of this accounting methodology. If Atlanta-based Coke s (NYSE: KO) board of directors grants options in 2002 at a similar level to 2001, the expected impact would be approximately 1 cent per share for 2002. © Copyright 2012, WABE