Today’s Federal Register.
The IRS issued Revenue Ruling 2003-98 which provides guidance concerning the application of section 83 of the Internal Revenue Code where stock options are granted and the company granting the options is later acquired.
The University of Pennsylvania’s Wharton School Newsletter has published this article of interest: “Underfunded Pensions: Causes, Cures and Questions.”
“Our pension mess could be worse.”: the article by Janet McFarland for Globe and Mail talks about how the Canadian “pension plan mess” is better off than the U.S. “pension plan mess.” The article highlights how Canadian companies seem to be using more realistic assumptions for future investment returns than U.S. companies.
USA Today reports: “Stock options showdown will affect future of U.S. economy.” The article talks about research by economist Stephen Bryant and his colleagues, published in The Journal of Business in October 2000, which found that, unlike options, “restricted stock, due to its linear payoffs, is relatively inefficient in inducing risk-averse CEOs to accept risky, value-increasing investment projects.”