If XYZ Company had less stock compensation expense this year than last year, but recorded a net loss in both years, this years operating expense and effect on shareholders equity would be (all other factors equal/no change):

a. Operating expense lower than last year; a larger decrease to shareholders equity than last year

b. Operating expense lower than last year; a smaller decrease to shareholders equity than last year

c. Operating expense lower than last year, a larger increase to shareholders equity than last year