Start Backdating stock options definition

Backdating stock options definition

The report, from a Lehman Brothers analyst, called the companys historical options-granting practices "highly questionable." On July 10, the company disclosed that it had received a letter from the SEC about an informal investigation into the companys stock-option grants. 3, the company said it will likely have to restate past results as a result of problems with past grants.

26 said it expects to record noncash charges on options dating, cutting into net and operating income, with "material" results for some periods going back to 2000 after completing its stock-option backdating review.(Headlines)The Cambridge, Mass., biotechnology company disclosed on Aug.

10, 2006 that it is being investigated by the SEC for alleged options backdating.

On June 12, Applied Micro said the SEC notified it of an informal inquiry into past stock option grants. (Headlines)The Sunnyvale, Calif., company telecom-equipment maker said On Jan.

On May 31, Applied Micro said its audit committee is reviewing its historical stock-option grant practices, characterizing the review as voluntary and adding that it was initiated in response to recent industry issues involving stock options. 16, 2007 that it found accounting and dating problems with stock options issued to new officer employees and in a 1999 annual grant, and it would restate its past results for its fiscal years from 2000 through 2005.

It is being examined by the Securities and Exchange Commission. 7, the company announced that investors should no longer rely on its prior disclosures about the findings of its continuing internal probe. Noncash compensation costs related to backdating will be about $51 million, plus additional tax-related expenses.

It had previously said a preliminary review suggested no intentional backdating occurred and any charges were likely to be minor. (Headlines) (Options chart) The maker of gene-testing devices said on Aug 1 that an internal probe has uncovered "certain documentation lapses" in its stock options grant processes from 1997 through 1999, including one instance when the option grant date should have been recorded differently.

Here's a look at companies that have come under scrutiny for past stock-option grants and practices.

THIS SCORECARD WAS LAST UPDATED IN SEPTEMBER 2007 AND IS NO LONGER BEING UPDATED. Note: This list contains companies that have disclosed government probes, misdated options, restatements and/or executive departures as of Septmeber 2007.

The company added that it may face "significant tax liability" for prior years because it misapplied IRS rules.

On May 21, 2007 the company became current on late SEC filings and recorded, as a result of a restatement, for the fiscal years 1994 through 2005, pretax noncash compensation expense of $52.9 million.

Analog Devices reached a tentative settlement with the SEC in November 2005 related to grants. (Headlines)On June 19, the Phoenix education provider received a subpoena from the U. attorney for the Southern District of New York relating to stock-option grants.