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Pepsi to treat executive stock options as an expense

Pepsi also intends to change its compensation programme to move away from the sole use of stock options to using a mix of options and restricted stock. The New York-based company plans to start expensing options in the fourth quarter.

“The company believes reflecting the expense under this method will provide investors the greatest level of financial statement comparability and transparency,” said Pepsi in a statement.

It expects the options expense for 2003 to be 20 cents per share, and Pepsi

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