Option backdating board interlocks thunderbird emblem dating

01-May-2020 06:24

In view of recent actions and widening of regulatory investigations, we believe that it would be prudent for companies to review controls and procedures relating to stock option and other equity compensation grants and corporate governance guidelines on a regular basis.

In the attached Client Alert, we summarize the recent SEC guidance concerning the accounting for stock options and disclosure of stock option errors.

A new study by finance professors suggests that the backdating of stock options may be a much more wide-spread practice than once thought.

Initially, many believed that stock option backdating might have been concentrated in the high tech area.

In fact, the Securities and Exchange Commission is investigating more than 100 companies with respect to their stock option practices.

A recent study suggests that as many as fifty percent of the companies that issued options during the 1990's engaged in backdating.

"Firm Linkages to Scandals via Directors and Professional Service Firms: Insights from the Backdating Scandal," Journal of Business Ethics, Springer, vol. Matthias Kiefer & Edward Jones & Andrew Adams, 2016. "Shared auditors in mergers and acquisitions," Journal of Accounting and Economics, Elsevier, vol.

"The power of the pen reconsidered: The media, CEO human capital, and corporate governance," Journal of Banking & Finance, Elsevier, vol.

READ MORE Without question, the first six months of 2009 have been a period of sharply increased enforcement activity at the Securities and Exchange Commission.In addition we examine the linkages which occur from shared professional services firms, such as auditors and outside legal counsel.That these potential conduits are available is not in question, but rather, do investors perceive the conduits are used to pass along information about backdating stock options?The study, entitled "Option Backdating and Board Interlocks," argues a causal link between the proliferation of the practice and board members who served on multiple boards.The study's conclusions reinforce that every company take immediate steps to ascertain whether the practice occurred and properly restate any errors.

READ MORE Without question, the first six months of 2009 have been a period of sharply increased enforcement activity at the Securities and Exchange Commission.

In addition we examine the linkages which occur from shared professional services firms, such as auditors and outside legal counsel.

That these potential conduits are available is not in question, but rather, do investors perceive the conduits are used to pass along information about backdating stock options?

The study, entitled "Option Backdating and Board Interlocks," argues a causal link between the proliferation of the practice and board members who served on multiple boards.

The study's conclusions reinforce that every company take immediate steps to ascertain whether the practice occurred and properly restate any errors.

Theoretical and empirical work suggests that directors suffer reputation penalties in the director labor market for poor monitoring. Fried in their book —is that there is little or no accountability for excessive or abusive pay practices.