|
Company Statement
Sun Statement Regarding Stock Option Accounting
Wednesday, Mar 31, 10:00 AM PT
- Sun believes the use of broad-based stock options plans is indispensable to attracting and retaining the critical talent necessary to drive the innovation that will help spur our economic recovery and create the technology that will help protect our national security.
- The mandatory expensing methods being proposed will not result in
accurate or reliable financial disclosure because they inherently
neglect the unique nature of non-tradable employee stock options, and in
so doing will instead distort the financial picture of many companies
with shareholder-approved, broad-based stock option plans.
- Sun provides full disclosure on its stock options program in its
quarterly and annual filings with the SEC. This disclosure gives
investors the information they need to make an informed investment
decision on this issue with respect to Sun's stock options program. The
cost of Sun's stock options program to shareholders is clearly reflected
in fully diluted earnings per share numbers under current accounting
rules.
- At Sun, during the last 5 years, over 87% of all options shares were
granted to employees below the vice president level. This business
practice is good for our talented employees, good for Sun, and
ultimately aligns our employees' interests with our shareholders'.
| 
