Filed in archive executive pay by leon on July 7, 2006

Corporate governance watchdogs, the Corporate Library and institutional investment adviser Glass, Lewis & Co have revealed the warning signs for companies engaging in options backdating practices.

The red flags include missing Form 4 filings, options repeatedly granted when the share price is at quarterly lows and at irregular times and excessive stock option grants. Also, keep an eye on companies that have executives or board members who had previously served at companies that had come under investigation.

Also worth checking out is the Glass Lewis Proxy Talk proceedings looking at liability issues surrounding backdating and what investors can do about it.

Related Entries:

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The war on options scams - 14 August 2006
Bad taste of Apple's options - 02 January 2007
Apple un-backdates stock options - 18 March 2007
Jobs unlikely to face criminal charges over options backdati... - 23 April 2007

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Permalink: Red flags for backdated options

Tags: options backdating corporate flags backdated backdated+options flags+backdated corporate+governance

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Response from:

Some 50 companies are now under investigation for backdating options and there are enormous liability and legal issues. What are the warning signs that investors should watch out for?

Response from:

Some 50 companies are now under investigation for backdating options and there are enormous liability and legal issues. What are the warning signs that investors should watch out for?