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Who Really Catches The Crooks?

Who Really Catches The Crooks?

by Rick Turoczy on July 12, 2006

The latest corporate scandal is the backdating of executive stock options. Until recently, options cost a company nothing when they were issued, but the lower the issuing price, the more the executives profited from subsequent appreciation of the company’s stock.

Before the Sarbanes-Oxley Act of 2002, new options didn’t need to be reported for 40 days (now it’s two). So corporations had over a month during which, it appears, some “backdated” the dates on which options were issued to fall on their stocks’ low points.

Who Really Catches The Crooks?

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