Friday, February 16, 2007

Stock Option Backdating

I had posted before on stock option backdating, and we have yet another executive who is being found guilty on backdating stock options.

As Pat Milton (AP) reports:

McKelvey became just another casualty in the widening scandal over the accounting of past options grants. At least 135 U.S. companies have disclosed internal inquiries or government investigations, and at least 39 executives and board directors at 19 companies have been fired or have resigned.

I remember in my previous post on the topic saying that Sarbanes-Oxley curtailed some of the practice. That is to say, I think it happens less frequently, as did the paper I mentioned surmise. I still have to gawk at the number though, and realize that the amount of money to be made by backdating has to be too good to pass up.
Post a Comment