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.
Publication Name: CQ Researcher
Subject: News, opinion and commentary
ISSN: 1056-2036
Year: 2007
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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.
Publication Name: CQ Researcher
Subject: News, opinion and commentary
ISSN: 1056-2036
Year: 2007
User Contributions:
Comment about this article or add new information about this topic: