Open with a short overview very short demonstrating you understand the concept of stock options. Look in one or two ARs of companies and very briefly describe how they handle equity compensation and how much of an impact it had on earnings. Maybe use one tech company that is still big on options and one company that does not use stock options as much. Then opine on how much of a difference it would have had on corporate behavior had the FASB stood firm and forced expensing in 1994 as proposed vs 2005.