Specifically, we study cases arising out of the stock options backdating
is a practice whereby the date of the option
was behind much of the controversy.
LexisNexis unit Mealey's (New York) has released "Mealey's Litigation Update: Stock Option Backdating," an executive summary that includes a collection of 57 case summaries and litigation updates reporting on complaints, motions, briefs, other pleadings, settlements and rulings involving stock options backdating
(4) The Corporate Library, "The Spread of Options Backdating
: A Closer Look at the Boards and Directors Involved," October 2, 2006.
In reading the October "Options Backdating
" issue, it seems clear that incentive stock options (ISO) isn't the problem; the nonqualified stock option (NSO) is the problem.
has turned out to be more widespread than most believed.
A Standard & Poor's 500 index fund had proposed that CVS/Caremark adopt a strong policy against options backdating
, including seeking the resignation of any executive or director found to have accepted backdated options or approved an award of backdated options to others.
In options backdating
, a company issues stock options on one date but provides fraudulent documentation indicating that the options were issued earlier.
In professional liability, the markets for directors' and officers' insurance have been especially active, in the wake of ongoing government investigations and the most recent developments in stock options backdating
. Dan Dolan, part of the Aon Re D&O team in Stamford, Conn., and colleague Frank Hand (not pictured here) were both cited by numerous reinsurers who commented that the Stamford operation has one of the biggest D&O books in the market.
This Essay examines the problem of tax noncompliance through the prism of the options backdating
The company's former CEO, George Samenuk, stepped down in October as part of a stock options backdating
scandal that also led to the ouster of President Kevin Weiss.