January 19, 2010
FAS 123(R) Option Assumptions: The 2008 Results
– Steven Seelig, Towers Watson
Our firm recently completed its 3rd annual study of stock option valuation assumptions and results under FAS 123(R).1 From 2007 to 2008, the percentage of companies disclosing option fair values decreased from 73% to 72%. The median percentage increase in stock compensation expense from 2007 to 2008 was 2.4%. There are a bunch of charts, etc. that provide more analysis in the study.