In letters Friday, the labor federation asked the Big Four accounting firms -- Ernst & Young, Pricewaterhouse Coopers, KPMG and Deloitte & Touche -- to provide information on their potential involvement as outside auditors for companies now under federal investigation for possible rigging of option grants to boost their value to the recipients.
"Given the potential damage to shareholders due to options backdating, I am concerned about what role (name of accounting firm) may or may not have had in the backdating ...," the AFL-CIO's secretary-treasurer, Richard Trumka, said in the letters to the chief executives of the four firms, which were made public Monday.
(NASDAQ: VTSS) Bookmark the list - I'm sure it'll grow quickly. At a recent conference, I was talking to a friend of mine who's done quite a bit of corporate governance work.
Criminal Investigation Potential Criminal Charges Potential Defences Consequences of a Guilty Plea or Verdict On October 24 2006 the growing stock options backdating scandal reached a milestone when David Kreinberg, former head of finance at software maker Comverse Technology Inc, received the first criminal conviction to stem from the scandal.
The current investigations focus on grants that are backdated to an earlier, lower stock price, which would transform the option into an 'in the money' grant.
13, 2006 (Associated Press) The AFL-CIO, one of the largest shareholders in public companies, is seeking to learn about the role that big accounting firms may have played in the burgeoning stock options timing affair.
But abuse of stock options has been allowed to perpetuate for years.
In all my reading of the backdating scandal coverage, I have yet to see a thorough analysis of the real victims of this scandal: shareholders.
You’d think that shareholders wouldn’t tolerate the use of accounting sleight of hand to compensate executives while bypassing the traditional “selling, general, and administrative” line in the income statement.Giving retroactive value to purchases from the earlier date.In the context of corporate governance, the illegal practice of setting the date of options awarded as part of executive compensation to a period when the stock price was very low (rather than setting the date of the options on the date the award was made). A couple of them would file preemptive lawsuits as soon as a firm's stock price dropped by a certain amount. He said he's met a number of securities class-action lawyers.
Search for backdating companies:
The number of stock options criminal cases should continue to increase.