If your browser does not accept cookies, you cannot view this site.
In the past few years, CEOs have become substantially more likely to be removed from their positions due to ethical misconduct or scandals, even though the number of CEOs dismissed for such reasons remains quite low overall, according to a new study by Per-Ola Karlsson, De Anne Aguirre, and Kristin Rivera of Pw C/Strategy&.
At Globally, dismissals for ethical lapses rose from 3.9 percent of all successions in 2007–11 to 5.3 percent in 2012–16, a 36 percent increase.
The Wall Street Journal (see discussion of article below) pointed out a CEO option grant dated October 1998.
The number of shares subject to option was 250,000 and the exercise price was (the trough in the stock price graph below.) Given a year-end price of , the intrinsic value of the options at the end of the year was (-) x 250,000 = ,750,000.
This site stores nothing other than an automatically generated session ID in the cookie; no other information is captured.
In general, only the information that you provide, or the choices you make while visiting a web site, can be stored in a cookie.The companies involved in the recent scandal were backdating options to a time when the stock price was lower, making them immediately lucrative. stock options by claiming that they’re an incentive for performance: the executives get rich only if they do a good job and the stock goes up.As it happens, companies are perfectly free to issue options priced below the current market: those are called “in the money” options, and they’re worth something right when they’re issued. But there’s a rule that companies have to follow when they issue “in the money” options: they have to disclose it in their financial statements. Unless executives can time-travel, though, it’s hard to make that case for backdated options.in order to make them more valuable, it seemed like a problem that would come and go quickly... What’s distinctive about this one is that the benefits companies got from backdating were so small.Never, you might say, have so many cheated so much to gain so little.In comparison, had the options been granted at the year-end price when the decision to grant to options actually might have been made, the year-end intrinsic value would have been zero.