CalPERS addressed the question earlier this year as it considered a package of post-Enron reforms. However, the board postponed acting on a staff recommendation favoring expensing of stock options.
Still, some speculate that the CalPERS board will vote in favor of the move.
Proponents of expensing say options are compensation and should be treated as such while opponents say valuing options would be difficult and expensing would confuse investors.
Other organizations have considered treating options as business expenses as well. The Financial Accounting Standards Board proposed the move, but under intense pressure from Congress and corporations, later retreated.