It's finally the time for Statement 123(R) to go into effect for all publicly-traded companies. Legislative efforts to derail the standard failed. So did efforts to minimize the value of stock options by creating a Potemkin village of a market for employee stock options, courtesy of Cisco Systems. And the SEC's recent proposals on executive pay disclosures require firms to include values of stock options based on Statement 123(R) accounting.

So you might think that the fight is over. Nope. Like a zombie in a George Romero film, this is the issue that won't stay dead.

What's happening now? Nothing overt, but the National Journal's Technology Daily (subscription required) reports a couple of interesting tidbits in a January 23 article written by Randy Barrett. To wit:

"Still up for debate is exactly how stock options should be counted. "There is considerably more work the SEC can do on valuation," said Jeff Peck, director of the International Stock Option Coalition.""

That might mean we'll see some old familiar arguments about the unfairness of valuing options in the comments on the executive compensation disclosure proposal.

Another tidbit in the article:

"Industry officials said they are waiting for the SEC to name a new chief accountant before the lobbying begins in earnest on the valuation issue. Donald Nicolaisen left that post in early November and his successor has not been announced."



If there's going to be "earnest lobbying", it'll certainly help the tech lobbyists to have a friendly face in the chief accountant's office. The selection of the chief accountant by Chairman Cox is going to be critical. It's bound to be his most highly scrutinized move to date.