A Step In The Right Direction!
By jsolof on Sep 30, 2004
I know, I know -- I owe you a full accounting of last week's adventures. I'll get there! But in the mean time, there's been some good news. One of the Senators whose offices we visited last week, Majority Leader Bill Frist, has written a letter to SEC Chairman William Donaldson, in response to Donaldson's letter of August 19.
Majority Leader Frist writes:
I was particularly interested in the discussion at the conclusion of your letter about the possible need for the SEC to issue guidance, safe harbors, or a delay in the implementation date. I would hope that the SEC would use these tools, and take the appropriate time necessary, to fully flesh out the many critical issues surrounding the implementation of a [stock option] valuation standard.
Devising an accurate valuation model is critical to our economy, the investing public, and the more than 14 million American workers who hold stock options. I feel strongly that options are vital to preserving American innovation and enterpreneurship, but I also recognize that we must ensure that investors receive accurate, reliable, and transparent financial information. Given your ultimate authority over financial reporting and accounting standards, the SEC is best suited to conduct appropriate testing and determine the best method or methods to value employee stock options."
I'd like to express my thanks and appreciation to Rohit Kumar and Libby Jarvis, from Majority Leader Frist's staff, for taking the time not only to listen to us last week, but to really hear what we were saying. And obviously, to share it with their boss.