Molex Execs To Repay Misbegotten Stock Options

Law360, New York (August 4, 2006, 12:00 AM EDT) -- Fourteen executives at Molex Inc. will pay back $685,000 to compensate for “misdated” stock options over a 12-year period, the company announced Wednesday.

The move represents a new strategy in the growing stock options scandal. To date, most of the companies under government investigation have taken accounting charges rather than require executives to pay back profits.

“This is a nice preemptive strike designed to minimize damage to the company,” said Randall Heron, an associate professor of finance at Indiana University, who has written extensively on options...
To view the full article, register now.