News & Events

UI Research Helped Expose Backdating Scandal

The stunning dismissals of criminal cases against three former Broadcom Corp. executives in the last week illustrate the struggles the U.S. attorney's office has encountered in prosecuting corporate executives for backdating stock options, a practice that makes it appear that their companies had fewer expenses and greater income than they really had. Erik Lie, a University of Iowa business professor whose research helped expose the backdating scandal, has calculated that 13.6 percent of all option grants to top executives from 1996 through 2005 were backdated or otherwise manipulated.

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