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SEC To Address Backdating

Law360 (June 27, 2006, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission plans to provide guidance this summer on the granting of stock options, in the wake of dozens of companies disclosing internal investigations, subpoenas and SEC inquiries into their options-granting practices.

While the SEC will vote on new rules governing executive compensation in general, the guidance will deal solely with backdating and other manipulative tactics pertaining to stock options, according to an SEC spokesperson. Tactics similar to backdating include so-called “springloading,” in which an options grant is timed to either capitalize...
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