Option backdating and managerial compensation Free sex cam no upgrad or credit care need
In the late 1990s, companies were facing intense competition to hire and retain the best and brightest employees.At the same time, there was sharp rise in the overall level of executive compensation (some would say astronomical), despite the million-dollar salary deductibility cap.In settling with the SEC, the former Comverse CFO consented to, among other sanctions, a permanent injunction against violation of the securities laws, a permanent bar against serving as a corporate officer or director, and payment of .4 million in disgorgement and pre-judgment interest.At the same time, in a related criminal action brought by the US Attorney, Kreinberg pled guilty to securities fraud and conspiracy to commit securities fraud, mail fraud and wire fraud, and he now faces up to 15 years in jail, mandatory restitution and a possible criminal fine.While they offended corporate shareholders, had to be expensed by the corporation, and had less favorable tax consequences, they had other advantages.
In addition to the enforcement efforts, others at the Commission have taken two other major steps to address this issue.
Second, in September the Office of the Chief Accountant issued guidance for companies trying to cope with the financial reporting ramifications of their various historical options practices from a reporting perspective.
From my perspective, the collective efforts by the SEC are a model way of addressing an issue proceeding from various perspectives to come up with practical and wide-ranging solutions. I'd like to address this on two fronts first, I'll discuss how we got to our efforts at the Commission and then I'd like to step even further back and talk about some of my impressions on how we ended up with the option issues we are confronting.
First, on the SEC front, our investigations are born of a conscious effort to proactively think about where problems might be, to methodically inquire whether there actually are problems, and then to pursue the best ways to address any problems that exist.
In this regard, we identified stock options grants as a potential trouble spot several years ago well ahead of the curve.
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Despite all the recent media attention, Brocade and Comverse are not the SEC's first stock options cases.