News & Events

Lie Comments on Extent of Backdating

On the heels of his announcing the formation of a stock options task force, the U.S. Attorney in San Francisco will likely soon indict a former Silicon Valley executive, reported Justin Scheck in The Recorder on Friday night. Gregory Reyes, the ex-CEO of Brocade Communications, is widely expected to be the first executive indicted in the options-timing investigations, reports Scheck. Meanwhile, a new study shows that more than 2,000 companies appear to have used backdated stock options to sweeten their top executives' pay packages, reports the New York Times. "It is pretty scary, and it's quite surprising to see," said ERIK LIE, a finance professor at the University of Iowa who did much of the initial work on options-timing and co-authored the most recent study. The new statistical analysis suggests the practice is even more widespread than previously disclosed.

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