Curbing CEO pay: Iowa professor helps uncover backdating scandal

Article Abstract:

Erik Lie, an associate professor at the University of Iowa's Tippie College of Business, examined nearly 6,000 stock option grants made from 1992 through 2002. He observed that companies were backdating them when the stock price was the lowest, thus drastically increasing the potential for big profits. Companies need to file grants electronically on the same day the grants are given to eliminate backdating.

Legal issues & crime, Government regulation (cont), Government regulation, Legal/Government Regulation, Laws, regulations and rules, Employee stock options

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Curbing CEO pay: Backdating exposed

Article Abstract:

The backdated stock option was exposed and generated heavy news coverage by the Wall Street Journal, spurring outrage in the Congress. Nearly 200 companies were suspected of having practiced backdating, which increased chances for executives to make higher profits and provided accounting and tax benefits for companies.

Analysis

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Similar abstracts:

• Abstracts: Curbing CEO pay: Rules backfire. Curbing CEO pay: Undue influence

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