Stock options backdating and representing law firms

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These companies met their demands, and were allowed to do so by shareholders who were far too distracted in their quest to find tech companies with the best growth prospects.

By the market bottom in 2002-2003, scores of tech companies were left with unhappy employees holding worthless options with triple-digit exercise prices.

But first, on the same page of the July 15 Wall Street Journal is another article quoting an early whistle-blower in the backdating scandal.

He suspects that it will turn out much worse than what has been exposed in the media thus far (emphasis added): “Erik Lie, a University of Iowa business professor whose work helped fuel regulatory inquiries into backdating, is expected to release fresh research this weekend showing anomalies that suggest a huge cohort of companies may have played games with their options grants.

If the exercise price were

The practice of backdating options is not illegal as long as it is disclosed to shareholders.20 to recommend they choose that day to grant options.He added that he couldn’t remember a time when the board didn’t follow his advice.”So both the CEO and compensation committee are clearly in favor of giving Stryker shareholders as little cash as possible for each option granted to the CEO.Lie and Randall Heron of Indiana University’s business school, examined almost 40,000 grants during that period.It found evidence of manipulation involving 23% of those grants between 1996-2002, when a new rule required executives to report grants within two business days of receiving them — making backdating far more difficult to achieve.

, then options would be nothing more than free stock grants, and treated as such in the eyes of recipients.

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The practice of backdating options is not illegal as long as it is disclosed to shareholders.

20 to recommend they choose that day to grant options.

He added that he couldn’t remember a time when the board didn’t follow his advice.”So both the CEO and compensation committee are clearly in favor of giving Stryker shareholders as little cash as possible for each option granted to the CEO.

Lie and Randall Heron of Indiana University’s business school, examined almost 40,000 grants during that period.

It found evidence of manipulation involving 23% of those grants between 1996-2002, when a new rule required executives to report grants within two business days of receiving them — making backdating far more difficult to achieve.

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The practice of backdating options is not illegal as long as it is disclosed to shareholders.20 to recommend they choose that day to grant options.He added that he couldn’t remember a time when the board didn’t follow his advice.”So both the CEO and compensation committee are clearly in favor of giving Stryker shareholders as little cash as possible for each option granted to the CEO.Lie and Randall Heron of Indiana University’s business school, examined almost 40,000 grants during that period.It found evidence of manipulation involving 23% of those grants between 1996-2002, when a new rule required executives to report grants within two business days of receiving them — making backdating far more difficult to achieve.

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