This Dog Barks But Doesn't Bite

News came today that starting June 15 Us companies will have to start expensing incentive options given to employees.

This strikes me as a Sarbanes/Oxley revisited. Do you remember that in August 2002 CEOs had to start certifying their companies earnings? There a was a lot of fear caused by this and it was a non event. Often big bad scary things turn out to be quite mild. Y2K comes to mind.

One thing about the FASB ruling is that this does not effect demand for routers, or PCs, or anything else. This will not effect revenue, or growth of revenue. Companies have been reducing options issuance for a while, that will probably continue. I would not be surprised to see the companies that do not cut options have p/e ratios expand.

Not to say there can't be a knee jerk reaction, but I am quite certain this will not auger the end of successful technology companies.