November 17, 2006
Bebchuk New Study on Stock Options
Professor Bebchuk's new study on stock options reveals that 1) over 800 companies may have back dated options; 2) old line companies did it as well (not just high tech companies); 3) it was not a substitute for executive compensation (those executives who received back dated options were otherwise high on the compensation charts; and 4) independent directors make a difference (maj. of independent directors reduced likely-hood of back dating by 1/3). Great stuff. I wish he had run an analysis of law firms against his findings. Which firms had clients that were more likely to cheat??
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Seen from abroad it's seems amazing . I thought stock options ( either created or bought on the market ) were granted by boards and that the IFRS were obliging companies to assess a cost of granting ? he cost beeing checked by the auditors ??
Is there somewhere an international comparative study ?? with eleemnts on the accounting treatment in cash and stock of the exercize ??
Posted by: de la villarmois | Jan 12, 2007 1:13:00 AM