News & Events

Columnist Cites Lie Study

What is the real cost of the backdating scandal? It's the skidding back to "Go" on the path to rebuilding investor confidence. The fault lines between investors and managements created by the Enron, WorldCom, and Tyco scandals have only begun to close; new fissures have now opened in the wake of disclosures from more than 60 companies that their options grants were tainted. The bad news is that there is apparently a lot more to come. Hundreds of people listened in on a conference call last week hosted by Institutional Shareholder Services during which a University of Iowa professor, ERIK LIE, one of the leading academic authorities on the issue, suggested that as many as 1,000 companies may have engaged in backdating of options, or, to use his words "did something fishy." In an e-mail message, Lie said the number is actually closer to 2,000.


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