Stock option back dating marvell
Additionally, companies can use backdating to produce greater executive incomes without having to report higher expenses to their shareholders, which can lower company earnings and/or cause the company to fall short of earnings predictions and public expectations.Corporations, however, have defended the practice of stock option backdating with their legal right to issue options that are already in the money as they see fit, as well as the frequent occurrence in which a lengthy approval process is required.Clearly, the Enron trials have not closed the book on corporate fraud.A new boardroom scandal is roiling Wall Street: stock options backdating.By 1998, Charter was serving over 1 million customers. The company went public in 1999 after acquiring 10 companies in the previous year.In 2005, four former executives were indicted for inflating subscriber base numbers.In 1972, a new revision (APB 25) in accounting rules resulted in the ability of any company to avoid having to report executive incomes as an expense to their shareholders if the income resulted from an issuance of “at the money” stock options.In essence, the revision enabled companies to increase executive compensation without informing their shareholders if the compensation was in the form of stock options contracts that would only become valuable if the underlying stock price were to increase at a later time.
THIS SCORECARD WAS LAST UPDATED IN SEPTEMBER 2007 AND IS NO LONGER BEING UPDATED. Note: This list contains companies that have disclosed government probes, misdated options, restatements and/or executive departures as of Septmeber 2007.Dozens of companies – including United Health Group, Comverse Technology, Vitesse Semiconductor and Affiliated Computer Services – have caught the eye of the Securities and Exchange Commission and the Department of Justice for the timing of their stock option grants.The question: did these companies backdate options grants – and falsify records – to make them more lucrative for their top employees? 400 Atlantic Street 10th Floor Stamford, Connecticut 06901 Phone Number: (203) 905-7801Fax Number: (775) 850-1279Website: Email Charter Communications CEO: Thomas M. Winfrey COO: John Bickham Charter Communications was incorporated in Delaware in 1993.The company initially grew mostly through acquisitions.