July 20, 2004 Washington, DC -- The Information Technology Industry Council (ITI) today applauded the overwhelming bipartisan support of stock option reform legislation by the U.S. House of Representatives.  The Stock Option Accounting Reform Act, which passed by a vote of 312-111 this afternoon, requires the mandatory expensing of stock options for top company executives but protects the stock-option plans for rank-and-file workers.  ITI anticipates scoring final passage of this legislation in its High Tech Voting Guide for the 108^th Congress.

 

"Broad-based employee stock option plans are catalysts for fueling innovation, inspiring entrepreneurship, increasing productivity, and boosting shareholder returns," said ITI President Rhett Dawson.  "We are very pleased that the House has passed this important legislation to promote the continued health and prosperity of the U.S. economy."

 

Investors have a right to accurate, consistent and useful information about employee stock options based upon simple and straight-forward accounting principles.  ITI believes that this legislation will help the Financial Accounting Standards Board (FASB) achieve this goal in a thoughtful and deliberate manner.

 

"The Stock Option Accounting Reform Act strikes a good balance between protecting shareholder interests and preserving stock options for future generations of American workers," added Dawson.

 

ITI's High Tech Voting Guide is used to measure Members of Congress’ support for the information technology industry and policies that ensure the success of the digital economy.  At the end of the 108th Congress, key votes will be compiled and analyzed to assign a score to every Member of Congress.

 

The Information Technology Industry Council (ITI) represents the leading U.S. providers of information technology (IT) products and services. ITI is the voice of the high tech community, advocating policies that foster U.S. economic growth and job creation by advancing U.S. leadership in technology and innovation; expanding market access for IT products; protecting consumer privacy and choice; promoting e-commerce; and enhancing the global competitiveness of its member companies.

ITI member companies include Accenture, Agilent Technologies, Apple, Canon U.S.A., Cisco, Corning, Dell, Eastman Kodak, eBay, EMC, Hewlett-Packard, Honeywell, IBM, Intel, Lexmark, Microsoft, National Semiconductor, NCR, Oracle, Panasonic, SAP, Sony Electronics, Sun Microsystems, Symbol Technologies, Tektronix, Time Warner, and Unisys. For more information, contact Shannon Feaster at sfeaster@itic.org.

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