News & Events

Lie Uncovered Stock Options Backdaters

A story about William McGuire's ouster as head of UnitedHealth over illegally backdated stock options points out that it wasn't regulators or whistle-blowers who outed this practice. It was a little-known University of Iowa business school professor, ERIK LIE, who determined that dozens of U.S. companies seemed to have near-perfect timing on option awards. His 2005 paper, "On the Timing of CEO Stock Option Awards," soon came to the attention of Wall Street Journal reporters.

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