Executive Compensation

Since Congress and the White House have been quiet on executive compensation issues over the last week or so, I thought I will give all of us a break. However, "Stock Options Opened for 'Call Writing'" was the title of an article in last week's The Wall Street Journal. 

Briefly, the SEC approved a rule on June 17, 2009, which would permit public companies to allow their employees to use vested stock options as collateral for writing exchange-listed calls.  Permitting this activity would require some affirmative actions by the Company, such as revise plan documents and putting in place guidelines. A company also should consider whether this activity is consistent with its stock ownership guidelines. (Note:  David Lynn will be blogging on this issue in more detail in the near future.)