Long-Time CEOs Backdated More Options: Study

Law360, New York (December 14, 2006, 12:00 AM EST) -- Companies that had long-tenured chief executives and a dearth of independent directors on their boards were more likely to backdate stock options, according to a new study released by Harvard Law School.

The study also confirmed that backdated grants were not substitutes for other forms of compensation, but instead lavished extra benefits on executives that were already making more money than their peers.

“Our tests identify a link between grant date manipulation and factors associated with higher influence of the CEO over directors,” wrote the co-authors...
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