Sox and backdating

-option grants, the role of company directors is coming under scrutiny.The Securities and Exchange Commission is now examining whether directors who sit on more than one company board may have spread the practice of backdating stock-option grants, reports Bloomberg.There was also evidence to suggest each unit increase in back door distance resulted in a $US82,733 drop in CEO pay.I examine the implications of the study in this piece.As to the first issue, the transaction between the FDIC and Weatherford couldn’t have retroactive effect unless the parties showed a clear intent for the transaction to be retroactive.

There are any number of contexts where this comes up — some legitimate and others not exactly aboveboard — but the logistics of negotiating and signing contracts are such that the issue is unavoidable.

The reason for the increases has been put down to the increased time and effort that goes into attending a handful of board meetings during the year when there's increased regulation and scrutiny from Sarbanes-Oxley and regulators.

Yep, the six degrees theory does not include investors.

The back door distance between directors A and B is deemed to be two.

Now, a Wharton business school study found that CEOs with a back door link to someone on the compensation committee received, on average, $US453,688 ($A601,294) more than those without such a connection.

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