Ethical issues in accounting for stock options. Throughout the deliberations on the accounting for stock options during the last decade, managers of business firms, particularly in technology industries, have argued against the recognition of an expense for stock options. These managers emphasize the difficulty in measuring reliably the cost of stock options until emploj -

ees actually exercise them. Yet the managers of these firms receive a substantial proportion of their compensation in the form of stock options. Discuss any ethical issues raised by the position of these managers.