Statement from William T. Archey, President and CEO of AeA Regarding Financial Accounting Standards Board’s (FASB) Proposal on Equity-Based Compensation

Washington, D.C. - March 31, 2004

“Opposition to stock option expensing is a primary priority for the high-tech industry,” stated William T. Archey, President and CEO of AeA. “FASB’s proposal drives a dagger into the heart of broad based stock option plans and will force many companies to discontinue option programs and Employee Stock Purchase Plans (ESPP) for their rank-and-file employees. If Congress doesn’t act, middle class workers throughout our industry will be the victims of FASB’s short-sighted efforts. We believe that there would be virtually no benefit to the investor as the information provided is less transparent than what is currently required.

"High tech companies issue options and ESPPs for virtually all employees - a practice quite different from other industries. This is not the time to put greater economic burdens on an industry that has struggled for the last several years and is just coming out of the economic downturn.”

William T. Archey
President and CEO
AeA – Advancing the Business of Technology 

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Advancing the business of technology, AeA is the nation's largest high-tech trade association. AeA represents more than 3,000 companies with 1.8 million employees. These 3000+ companies span the high-technology spectrum, from software, semiconductors, medical devices and computers to Internet technology, advanced electronics and telecommunications systems and services. With 17 regional U.S. councils and offices in Brussels and Beijing, AeA offers a unique global policy grassroots capability and a wide portfolio of valuable business services and products for the high-tech industry. AeA has been the accepted voice of the U.S. technology community since 1943.

This page was last updated on 04/01/04.