Comverse options backdating
Meeting minutes are often the most significant evidence if the grant was authorized in an actual meeting.Furthermore, Minute books may also contain any grants by unanimous written consent.
To begin, a company's stock option plan, as well as any other written policies and procedures may provide a preliminary understanding of grant practices.
Certain practices are more likely to raise red flags than others; grants by unanimous written consent and large grants with long lists of grantees are among such practices.
Open-ended clauses reading "effective as of", as well as long, ambiguous lists attached to more complex grant documents, are particularly likely to raise suspicions of misconduct.
Nearly 40 directors and officers have resigned as a result of these investigations.
Just how high these numbers will climb is not yet certain; according to a study conducted by Professor Lie of the University of Iowa, an estimated 30%, or 2 300, American corporations have engaged in the backdating of stock options.2 Recent court decisions have given way to a variety of actions against both company executives and directors.