- News>
- ICE Economy
ESOPs would have widened Sun`s loss: Report
San Francisco, May 08: Sun Microsystems` fiscal third-quarter net loss would have been 26 per cent wider if it had accounted for stock options granted to employees as an expense, according to regulatory filings made on Friday.
San Francisco, May 08: Sun Microsystems’ fiscal third-quarter net loss would have been 26 per cent wider if it had accounted for stock options granted to employees as an expense, according to regulatory filings made on Friday.
Sun's loss would have been $958 million, or 29 cents a share, had it expensed options, according to a quarterly filing with the US Securities and Exchange Commission. As it reported in April, Sun had a net loss of $760 million, or 23 cents a share. The quarter included large charges.
Sun, which competes against International Business Machines, Hewlett-Packard, Dell and EMC Corp., has suffered declining revenue for 12 consecutive quarters, as demand has been slow and it lost market share to rivals.
Investors in an increasing number of companies have passed non-binding proposals that they account for options as an expense. In March, HP shareholders voted in favor of such a proposal, which the company said its board would consider.
Proponents of expensing stock options argue that they have a real value, and that not accounting for them as an expense masks a company's true financial performance and the compensation of its employees.
Technology companies have long and broadly issued options to employees to spur innovation and to discourage workers from fleeing to rivals.
Bureau Report
Sun's loss would have been $958 million, or 29 cents a share, had it expensed options, according to a quarterly filing with the US Securities and Exchange Commission. As it reported in April, Sun had a net loss of $760 million, or 23 cents a share. The quarter included large charges.
Sun, which competes against International Business Machines, Hewlett-Packard, Dell and EMC Corp., has suffered declining revenue for 12 consecutive quarters, as demand has been slow and it lost market share to rivals.
Investors in an increasing number of companies have passed non-binding proposals that they account for options as an expense. In March, HP shareholders voted in favor of such a proposal, which the company said its board would consider.
Proponents of expensing stock options argue that they have a real value, and that not accounting for them as an expense masks a company's true financial performance and the compensation of its employees.
Technology companies have long and broadly issued options to employees to spur innovation and to discourage workers from fleeing to rivals.
Bureau Report