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A Delaware Lawyer’s Perspective On Stock Option Grant Procedures

Law360 (January 8, 2007, 12:00 AM EST) -- One of the most significant corporate governance stories of 2006 was the continuing stream of revelations by publicly traded corporations of problems with the process by which employee stock options were granted and reported and the resulting flood of restatements of financial statements by these companies.

According to one report, nearly 190 companies have been the subject of publicly announced investigations by either the Securities and Exchange Commission (SEC), the United States Department of Justice or the companies themselves. (See Schwannhausser, “What If You Threw a...
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