At least 68 companies announced their intention to expense stock options in their income statements, beginning in 2003, according to Standard & Poor's. Until last month, Boeing Co. and Winn-Dixie Stores Inc. were the only S&P 500 index companies to expense employee stock options.
"Expensing stock options will not substantially affect the bottom line at the majority of companies, although the impact may be greater among technology and telecommunications companies, which typically compensate employees with significant amounts of stock options," according to S&P.
Companies that will begin expensing options include General Electric Co.; American International Group; Citigroup Inc.; Coca-Cola Co.; General Motors Corp.; Procter & Gamble Co.; J.P. Morgan Chase & Co. and Goldman Sachs Group.
Of the 68 companies, 38 are in the S&P 500 index, seven are in the S&P MidCap 400 index and four are in the S&P SmallCap 600 index.