Ceo pay backdating
When options are backdated, the general result is the exact opposite.
Executives get the opportunity to buy their company stock at a low point, knowing that it is now worth a lot more.
The government has reportedly been looking at filing criminal charges against former executives at Apple Inc., KLA-Tencor Corp. — companies that have all acknowledged stock options shenanigans.
Reyes was charged with 10 felony counts of securities fraud; prosecutors accused him of doctoring company records and lying to investors and auditors about the company's options practices to falsely boost Brocade's profit.
Business Week reports that the disparity between the ‘shop floor and the executive suite’ is at an all-time high.
" Not everyone agrees that poor oversight by directors is a systemic problem in corporate America.
But wide agreement exists that when problems such as illegal stock-option grants crop up, the buck stops in the boardroom.
A widening federal investigation of stock-option trickery is part of a larger story: an unfinished effort to transform the governance of American corporations.
This week, the chairman of the US Securities and Exchange Commission (SEC) said the agency is poised to bring its first lawsuit "very soon" regarding the practice of so-called backdated options.