Stock options should be expensed on income statements because they represent a choice to compensate employees in stock rather than cash; two otherwise identical companies with different compensation structures will show different EBITDA and EPS, making one appear more profitable despite identical economic reality.
normativepending
Speaker
Anthony ChilupatiEvidence Quote
“You can choose to pay someone in stock options, or you can choose to pay them in cash. So, if I pay all my employees... I have a lower EBITDA. I have a lower EPS. Your stock trades higher than mine.”
Source
No. 1 Forensic Accountant: The Coming AI Collapse | Anthony Scilipoti— The Knowledge Project PodcastCreated: 8/11/2026, 12:09:33 AM
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