Neuberger Berman is following the path laid down by Coca Cola and the Washington Post. The fund manager will expense stock options that it grants employees starting next year. It is the first fund firm to publicly say it will do so.

"As an asset manager, we depend on the transparency of financial statements in making investment decisions for our clients. The same transparency should extend to our own accounting methods," said Jeffrey B. Lane, president and chief executive officer. "We believe this clarity is important in strengthening investor confidence and trust in our financial markets."

How stock option are accounted for has become the issue du jour both in Washington and on Wall Street in wake of the Worldcom and Enron bankruptcy's and the meltdown in the prices of technology stocks. Yet, the issue has rarely been raised in regards to financial services firms.

Neuberger Berman, which is known as a conservative fund shop with a value bent, said that it will follow SFAS No. 123 when accounting for stock options granted to employees.

It added that it does not foresee granting any significant number of options during the remainder of 2002.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE