Accounting changes sink share option schemes

Link: Tobacco FD not phased by share-options rule

Carol Arrowsmith, a partner with Deloitte, who is advising Sainsbury on how best to pay its bosses, said the double whammy had created a ‘perfect storm’ that has sunk the use of share options by many companies.

They were incorporated in just one in five new plans last year, down from 60% three years ago, The Guardian reported.

It is thought new accounting changes requiring companies to book the cost of share options in their accounts are a key factor in the fall in popularity of share options.

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