by: Bradshaw, Mark T.
Source: Harvard Business School
The footnote disclosure for eBay, Inc. in 2000 indicates that if the company had accounted for employee stock options under the fair value method, its reported profit of $48 million would have been a loss of $91 million. The protagonist is a prospective member of the compensation committee of the board of directors, which provides a corporate governance perspective on the role of compensation in attracting, motivating, and retaining talented employees.
Link: eBay, Inc.: Stock Option Plans (A, B, C)
Publication Date: 2005-11-18