Brocade backdating stock options Free sex webcam mobile

This means that corporations will have less time to backdate their grants or pull any other behind-the-scenes trickery.

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The jury, which deliberated for five and a half days, convicted Reyes of all 10 counts of securities fraud. Tomorrow, we will continue the fight,” Reyes’ attorney, Rich Marmaro, an attorney with Skadden Arps, said in a statement.

“Greg Reyes is innocent and we are confident he will ultimately be exonerated.

(For more insight, see ) Although it may appear shady, public companies can typically issue and price stock option grants as they see fit, but this will all depend on the terms and conditions of their stock option granting program.

However, when granting options, the details of the grant must be disclosed, meaning that a company must clearly inform the investment community of the date that the option was granted and the exercise price. In addition, the company must also properly account for the expense of the options grant in their financials.

A Real-Life Example A perfect example of what can happen to companies that don't play by the rules can be found in a review of Brocade Communications.

The well-known data storage company allegedly manipulated its stock options grants to ensure profits for its senior executives and then failed to inform investors, or to account for the options expense(s) properly.(To learn more, see .) Cost to Shareholders The biggest problem for most public companies will be the bad press they receive after an accusation (of backdating) is levied, and the resulting drop in investor confidence.While not quantifiable in terms of dollars and cents, in some cases, the damage to the company's reputation could be irreparable.For example, in early November 2006, United Health reported that it would have to restate earnings for the last 11 years, and that the total amount of restatement (related to improperly booked options expenses) could approach, or even exceed, 0 million. While reports of past indiscretions are likely to continue to surface, the good news is that companies will be less likely to mislead investors in the future. Prior to 2002, when the legislation was adopted, an executive didn't have to disclose their stock option grants until the end of the fiscal year in which the transaction or grant took place.However, since Sarbanes-Oxley, grants must be filed electronically within two business days of an issue or grant.Another potential ticking time bomb, is that many of the companies that are caught bending the rules will probably be required to restate their historical financials to reflect the costs associated with previous options grants. In others, the costs may be in the tens or even hundreds of millions of dollars.

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