APvia TBO: Microsoft Corp., the granddaddy of stock option compensation, will abandon the practice and instead give shares outright to all employees.

The software giant also said Tuesday it would expense the cost on its books, potentially knocking down profits by billions of dollars.

Typically outright stock awards, known as restricted stock, have been reserved to top executives' compensation. Microsoft said the new policy would be in effect in September for its approximately 50,000 employees.