[The Big Econ]

Given that we expense stock options according to the prevailing premiums of comparable options in the open market, the result is still the opposite of what is intended -- a tax deduction on a non-cash expense and, therefore, greater future earnings.

Do you propose that such expenses be non-deductible?

[Dialup Llama]

The company could sell warrants (like an option) and place the proceeds in the treasury. Instead it is giving the right to buy shares to an employee as compensation. It is definitely a real expense and can be reduced to a cash equivalent.

[The Big Econ]

Even if the company sells warrants only to its executives, it still has zero expense, save for underwriting fees, and the company takes in cash proceeds.

So far, the expensing that I've seen/heard described is that of decree, not corporate cost. We can call an apple an orange to make everyone happy, but we will still really have two different fruits.