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Lie Uncovered Backdating Scandal

A framed single share of Enron Corp. stock hangs on the wall of University of Iowa finance professor ERIK LIE's office. The stock, purchased in 2002 when Enron's value hit rock bottom, features the inscription "Respect. Integrity. Communication. Excellence." That served as the disgraced energy company's corporate slogan. "It's a good reminder for people who forget," said Lie. In executive suites across the country, there are plenty of CEOs, financial officers and board members who might like to forget Lie. From his second floor office at Iowa's Tippie College of Business, Lie spent months analyzing data to demonstrate how companies were illegally and retroactively timing stock option grants to fatten bonuses paid to top executives. His work is widely credited with exposing the latest scandal to rattle corporate America. www.courant.com


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