SEC Rule Will Target Illegal Backdating: Cox

Law360, New York (June 9, 2006, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission is eager to address the growing scandal over widespread backdating of stock options, and plans to do so by amending its proposed rule for executive-pay disclosure, according to SEC Chairman Christopher Cox.

The rule change, proposed in January, doesn’t currently target backdating. However, the recent spate of lawsuits and probes into the practice has put pressure on the SEC to find a preventive cure.

“Backdating must be fully disclosed. And the granting of backdated options must be properly accounted for,”...
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