Intel said today it planned not to count stock options as an expense.
Echoing comments from other companies that have said they would account for stock options as an expense, Intel's chief financial officer, Mr Andy Bryant, said: "There is no good valuation model to determine the fair value of unexercised employee stock options".
Intel said that as of June 2nd, its five most highly paid executives held 2 per cent of outstanding options, adding that its goal is to keep dilution related to its options programme to an average of less than 2 per cent annually.
Intel also said its chief executive, Mr Craig Barrett, would certify Intel's financial results, in keeping with a US Securities and Exchange Commission directive.
Technology companies, unlike companies in other industries, count on the issuance of stock options as a major source of compensation for its employees - from executives to rank-and-file workers.