Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Reality of stock-option drama is most errors were unintended

Reality of stock-option drama is most errors were unintended

by Rick Turoczy on August 21, 2006

It also needs to be remembered that almost all of the options backdating investigations involve historic actions. In Silicon Valley time, the conduct may as well have occurred eons ago. Corporate America has undergone significant changes as a result of the 2002 Sarbanes-Oxley legislation and aggressive government prosecution that produced the largest fines against corporations and executives ever.

In August 2002, the SEC issued a rule that requires companies to disclose option grants within two days of granting. This rule largely did away with the ability to backdate options, and a soon-to-be-published study by Professors Erik Lie and Randy Heron appears to confirm this. Also, the deterrent effect of enforcement cases brought by the SEC and the Department of Justice refocused executives on ensuring that internal procedures and controls are working properly.

In short, contemporary corporate America is bound by the strongest mandatory internal control structure and governmental oversight ever.

Reality of stock-option drama is most errors were unintended

{ 1 comment… read it below or add one }

Andre August 22, 2006 at 11:47 am

SEC is a United State government agency that was created to enforce the federal securities laws and to regulate the securities industry. SEC administers seven major laws that governs the securities industry.

Leave a Comment

Previous post:

Next post: