Backdating wall street
They were established in 1949 to remember George Polk, a CBS correspondent slain covering the Greek civil war. American City Business Journals Awards Barron's Bloomberg Business Insider Business Week Business weeklies CNBCCommentary Company coverage Coverage Crain's publications Dow Jones & Co.
Federal prosecutors are strongly considering criminal charges against former executives of Broadcom , Apple , and KLA-Tencor , related to the backdating of stock options, the Wall Street Journal reported on Friday, citing people familiar with the situation.
Finally, we find that suspect exercise-and-hold transactions are more likely in firms with a higher likelihood of stock option grant backdating.
For the sample of exercise-and-hold transactions by insiders of firms under scrutiny for option grant backdating as listed in the “Options Scorecard”, we find that 21.53% of exercises by CEOs and 18.41% of exercises by non-CEOs occurred on the day the stock was at its lowest price during the month.
Thus, we expect that opportunistic backdating, to the extent it exists, is more likely to occur in exercise-and-hold transactions.
That is, insiders from firms with alleged grant backdating practices were more likely to have a suspect exercise than other insiders.
We also find that the firm-specific odds of option grant backdating are positively associated with the frequency of suspect exercises among firms not mentioned in the list.
They revealed the “widespread practice of backdating stock-option awards that allow executives to buy low and sell high, greatly increasing their compensation.
The stories shook corporate giants from Apple to United Health Group and triggered federal investigations into whether shareholders were deceived at more than 130 companies.”The George Polk Awards are a series of prestigious American journalism awards issued annually by Long Island University in New York.