Corporate Corruption Spreading Like Wildfire
More than 135 U.S. companies have disclosed internal inquiries or government investigations related to backdating of stock options.
That means instead of using the share price and date when the options were actally issued, they picked an earlier date with a lower stock price, so their gain would be greater.
At least 39 executives and board directors at 19 companies have been fired or resigned. Top executives who have recently resigned over options investigations include: UnitedHealth Group Inc. Chief Executive William McGuire, KLA-Tencor Corp. Chairman Kenneth Levy, CNET Networks Inc. Chief Executive Shelby Bonnie and McAfee Inc. CEO George Samenuk. McGuire quit as chairman earlier this month and will resign as CEO by Dec. 1. And the most recent casualty is former chief executive of Monster Worldwide Inc., Andrew McKelvey.
As always, it is easier to make money cheating, than the honorable way.
The only surprise is that this time they got caught.