The Securities and Exchange Commission(SEC)is changing how companies must report the way of granting stock options to executives.

The disclosure rules will be similar to the reporting of stock and option awards under Financial Accounting Standards Board rule FAS 123R.

Under that rule, the costs of equity awards are spread over the period in which the employee works for the award.

“The new disclosure requirements will be easier for companies to prepare and for investors to understand,” says Christopher Cox, the SEC chairman.

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