Socially Responsible mutual fund family Citizens Funds applauded Coca-Colas decision to expense stock options on its income statement, rather than treating this expense in a footnote. This will make executive compensation expenses clearer to investors, according to Citizens.
"It took guts for a giant such as Coca-Cola to announce that it will begin expensing options," said Valentina Dingle, vice president and corporate spokeswoman for Citizens. "Its high time investors got the full picture in terms of how overall performance is calculated. There are a lot of hidden costs."