When Human Genome Sciences in Rockville, Md., recruits top scientists, the biotechnology company usually offers them a stake in its future success in the form of stock options. "We very aggressively use stock options to attract talent to our industry, because we have to compete with the much more stable pharmaceutical industry, or government or university research labs, where job security is so much greater," says Alain Cappeluti, vice president of finance at the 13-year-old company.
Finding and keeping new talent could get tougher for biotechs such as Human Genome Sciences under new accounting standards that take effect on June 15, 2005. The Financial Standards Accounting Board (FASB) of Norwalk, Conn., which finalized the new standards in December 2004, will require companies to expense all employee stock options. The change will force American companies to create "transparent" financial statements, and bring US accounting standards in line with international standards, according ...
