Columnist Compares Stock Options Backdating, Flying DeLorean
Bookmark & ShareMay 26, 2007
Source: Appleton Post-Crescent
A columnist compares stock options backdating to Marty McFly's trips through time in a time machine built out of an old DeLorean in the "Back to the Future" movies. The practice of backdating options was uncovered by ERIK LIE, a Norwegian professor of finance at the University of Iowa. Lie scrutinized 8,000 companies and discovered that 29 percent of them, more than 2,000 corporations, experienced a jump in the price of their stock after awarding options. Lie estimates that the odds of such jumps are "at least one in a billion." One of the companies Lie examined was Apple, which led to SEC charges against two executives. The Post-Crescent is published in Wisconsin.
Contact: Erik Lie, ,
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