Backdating accounting definition

Afterward, the number of suspicious grants dropped in half. (BRCM), a communications chip company, stands out as one of the best examples of how an excessive option plan can dilute shareholder interests.

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But long-term executive/shareholder interest alignment gets thrown out the window when unforeseen circumstances cause a temporary crash in a company’s stock.

Executives can profit quickly at shareholders’ expense in such instances.

But are options really as great for all parties as many have assumed?

The stock option “backdating” scandal has implicated several (mostly technology) companies over the past few months.

In his new research paper, which analyzes options prices and share movements, Dr.

Lie estimates that 29% of the nearly 8,000 firms studied had backdated or otherwise manipulated grants to top executives at some point between 1996-2005.“The paper, authored by Dr.

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.

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.

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