Backdating Not Limited To Execs: Study

Law360, New York (December 18, 2006, 12:00 AM EST) -- About 460 public companies manipulated stock options grants not only for their executives, but also for their outside directors, according to a new study by Harvard Law School.

The study, the first of its kind to examine directors and not just executives, could explain why more boards didn’t act to stop the activity.

“This paper shows that opportunistic timing problems have not been limited to executives’ grants, as has been thus far assumed, but rather have also affected outside directors’ grants,” wrote co-authors Lucian Bebchuk of...
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