Broad-Based Stock Option Plan Transparency Act of 2003
Latest action · May 1, 2003 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S5671)
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedMay 1, 2003
- Passed SenateNot reached
- Passed HouseNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Broad-Based Stock Option Plan Transparency Act of 2003 - Directs the Securities and Exchange Commission (SEC) to require that certain mandatory periodic reports include detailed information regarding stock option plans, stock purchase
plans, and other arrangements involving an employee acquisition of an equity interest in the publicly traded company, particularly with respect to the dilutive effect of such plans.
Requires such reports to include: (1) a discussion, written in "plain English" of the dilutive effect of stock option plans, including tables or graphic illustrations; (2) expanded disclosure of the dilutive effect of employee stock options upon the earnings per share number of the company; (3) prominent placement and increased comparability of all stock options related information; and (4) a summary of the stock options granted to the five most highly compensated executive officers of the company, including any outstanding stock options of those officers.
Directs the SEC to study and report to Congress on the effectiveness of the enhanced disclosures in increasing transparency to investors.
Prohibits the SEC from recognizing as generally accepted accounting principles for purposes of enforcing the securities laws any accounting standards related to the treatment of stock options that it did not recognize for that purpose before April 1, 2003.
Instructs the Secretary of Commerce to report to Congress on a study and analysis of broad-based employee stock option plans, particularly in the high technology and any other high growth industries.
Cosponsors 20
Members who signed on, in the order they did. Signatures ran from May 1, 2003 to May 18, 2004; 15 are original cosponsors, there from the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-CA | Barbara Boxer | Original | May 1, 2003 |
| R-MT | Conrad R. Burns | Original | May 1, 2003 |
| D-MI | Debbie Stabenow | Original | May 1, 2003 |
| D-CA | Dianne Feinstein | Original | May 1, 2003 |
| R-VA | George Allen | Original | May 1, 2003 |
| R-OR | Gordon H. Smith | Original | May 1, 2003 |
| D-NV | Harry Reid | Original | May 1, 2003 |
| R-VA | John Warner | Original | May 1, 2003 |
| R-ID | Larry E. Craig | Original | May 1, 2003 |
| D-WA | Maria Cantwell | Original | May 1, 2003 |
| R-ID | Mike Crapo | Original | May 1, 2003 |
| R-MN | Norm Coleman | Original | May 1, 2003 |
| D-WA | Patty Murray | Original | May 1, 2003 |
| R-UT | Robert F. Bennett | Original | May 1, 2003 |
| R-CO | Wayne Allard | Original | May 1, 2003 |
| R-NM | Pete V. Domenici | May 5, 2003 | |
| D-MA | Edward M. Kennedy | May 12, 2003 | |
| D-NM | Jeff Bingaman | Jun 9, 2003 | |
| R-OK | Don Nickles | Jun 18, 2003 | |
| R-MO | Jim Talent | May 18, 2004 |
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| Senate | Banking, Housing, and Urban Affairs Committee | Referred May 1, 2003 |
Actions 3
Everything that happened, newest first.
- May 1, 2003Introduced in Senate
- May 1, 2003Sponsor introductory remarks on measure. (CR S5670-5671)
- May 1, 2003Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S5671)
In the Congressional Record 1
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Senate | Debate and remarks S5644, S5670–S5672Text printed S5671 | Barbara Boxer D-CA, Dianne Feinstein D-CA, John Ensign R-NV (text) | May 1, 2003 |
Titles 2
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- A bill to direct the Securities and Exchange Commission to require enhanced disclosures of employee stock options, to require a study on the economic impact of broad-based employee stock option plans, and for other purposes.
- Short Titles as Introduced
- Broad-Based Stock Option Plan Transparency Act of 2003
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
- Accounting
- Commerce
- Congress
- Congressional reporting requirements
- Earnings
- Economic impact statements
- Economics and Public Finance
- Employee motivation
- Employee ownership
- Employee stock options
- Executive compensation
- Finance and Financial Sector
- Financial statements
- Foreign Trade and International Finance
- Government Operations and Politics
- High technology
- Independent regulatory commissions
- Industrial research
- Information disclosure (Securities law)
- International competitiveness
- Investors
- Labor and Employment
- Product development
- Recruiting of employees
- Science, Technology, Communications
- Securities and Exchange Commission
- Skilled labor
- Standards
- Technological innovations
Text 1
Each version as it was printed, newest first.
- May 1, 2003Introduced in Senate
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.