Backdating options sec
We study the Securities and Exchange Commission's (SEC) enforcement decisions in the context of the highly salient back-dating scandal.We find that (1) the SEC shifted its mix of investigations significantly toward backdating and away from other accounting issues; (2) event studies of stock market reactions to the initial disclosure of backdating investigations shows that those reactions declined over our sample period; (3) later backdating investigations are less likely to target individuals and be accompanied by a parallel criminal investigation; (4) later investigations were more likely to be terminated or produce no monetary penalties; and (5) the magnitude of the option backdating accounting errors diminished over time relative to other accounting errors that drew SEC scrutiny.In settling, ACS neither confirmed nor denied the allegations made by the SEC. I often talk to startups that claim that their compensation package has a higher expected value than the equivalent package at a place like Facebook, Google, Twitter, or Snapchat.Only assets whose risk cannot be diversified away carry a risk premium (on average).
Like most people, extra income gives me diminishing utility, but VCs have an arguably nearly linear utility in income.
His practice focuses primarily on representing individuals and organizations in connection with SEC enforcement and criminal matters relating to insider trading, corporate financial irregularities, and securities sales practices.
Alex’s government experience includes serving as a Special Assistant United States Attorney on the Securities and Commodities Fraud Task Force at the US Attorney’s Office for the Southern District of New York.
The Santa Monica, Calif., videogame company said on July 28 that the SEC has asked the company for documents related to its stock-option grants as part of an informal inquiry.
The company also said its board has appointed a special subcommittee of independent directors to conduct an internal review of the companys historical stock-option grant practices. 25 the company said it appears likely that actual measurement dates for certain historical stock-option grants will be found to differ from the recorded grant dates for such awards.