Spread of options backdating

21-Oct-2020 10:45

The study, the authors say, “looked at all present-day connections among the 120 companies implicated at some point in the past in the practice of backdating of stock option grants.Of the companies implicated in the options backdating scandal, some 51 of their boards are linked to at least one other of the 120 ‘scandal’ boards via a director presently or recently serving on both boards.” That approach hasn’t sat well with Novellus.

Some of the firms mentioned in the report, which found that companies entrenched in the backdating scandal are likely to share directors, say the governance-research firm’s claim is flawed by incorrectly implying that the board members listed served simultaneously.

The results of the independent investigation concluded that there was no evidence of stock option backdating at either [Redback or PMC Sierra].” Following academic reports released last year that studied option-grant timing, the SEC and the U. Attorney for the Northern District of California requested information on Redback’s practices.

According to Redback spokesman Doug Wills, who has not seen The Corporate Library report and did not want to comment on it directly, Redback determined it was implicated in a study by University of Iowa professor Erik Lie because of a mathematical error.

However, he did not join the Novellus board until 2004, a fact that is noted in the report.

That is at least three years after the period generally acknowledged to be the time when the wave of backdating occurred.

Some of the firms mentioned in the report, which found that companies entrenched in the backdating scandal are likely to share directors, say the governance-research firm’s claim is flawed by incorrectly implying that the board members listed served simultaneously.

The results of the independent investigation concluded that there was no evidence of stock option backdating at either [Redback or PMC Sierra].” Following academic reports released last year that studied option-grant timing, the SEC and the U. Attorney for the Northern District of California requested information on Redback’s practices.

According to Redback spokesman Doug Wills, who has not seen The Corporate Library report and did not want to comment on it directly, Redback determined it was implicated in a study by University of Iowa professor Erik Lie because of a mathematical error.

However, he did not join the Novellus board until 2004, a fact that is noted in the report.

That is at least three years after the period generally acknowledged to be the time when the wave of backdating occurred.

Hodgson says his group included all companies that have reported they are conducting internal investigations, have faced scrutiny from the SEC or Do J, or are facing a shareholder derivative lawsuit.