News & Events

Lie: 10 Percent Of Pre-Rule Stock Options Backdated

Securities and Exchange Commission Chairman Christopher Cox said Tuesday that the growing number of companies under investigation for possible manipulation of stock-option grants is "of serious concern" to the agency. At least 34 companies have disclosed criminal, regulatory or internal probes into whether they manipulated or falsified dates on options awards to benefit top executives. More than a dozen executives, including five chief executives, have lost their jobs at the companies after investigators questioned dates of option grants. ERIK LIE, the University of Iowa finance professor who helped spark the investigations, has said as many as 10 percent of all stock options granted before the rules were tightened in 2002 were backdated. A version of the story also ran on the Website of BLOOMBERG NEWS.

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