Stock Options Scandal Could Continue
Bookmark & ShareDecember 12, 2006
Source: Business Week
The toll of the stock options timing affair -- corporate America's scandal of the year -- has been heavy. Federal officials say more prosecutions will be brought in 2007 over manipulation of the timing of stock option grants to enrich top company executives. Nearly every business day, more companies report federal or internal investigations. New lawsuits by shareholders are filed. More businesses disclose that because past option grants may have distorted their financial results, they may have to restate earnings. Will there be more? Just over 2,000 public companies, or 29 percent of those in the United States that give stock options to executives, have timing issues, according to ERIK LIE, an associate professor of finance at the University of Iowa, and Randall Heron, an Indiana University associate finance professor. Their research last year helped focus attention on a widespread pattern of conduct. The ASSOCIATED PRESS article also appeared in the HOUSTON CHRONICLE, MSN MONEY, and the BOSTON GLOBE.
Contact: Erik Lie, ,
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