Back Dating

  • Back Dating

    The Cost of Backdating: $10 billion or $5 billion?

    How much has the backdating scandal cost corporate America? In terms of resignations and firings, the cost has been steep, according to a report from the financial advisory firm Glass-Lewis. “The firm has said at least 44 executives and directors at 24 companies have been fired or resigned to date,” according to the San Jose […]

    / Oct 25, 2006 at 11:06 AM
  • Back Dating, Business Media, UnitedHealth

    Backdating Scandal or Backdating “Scandal”

    The Wall Street Journal has done a great job on backdating, both on its news and editorial sides. Its news side basically broke the backdating story wide-open with its investigation into the practice, and has been one of the best places to keep up with which executives and companies have faced options timing challenges. The […]

    / Oct 17, 2006 at 1:20 PM
  • Back Dating, Comverse, Kobi Alexander

    More Charges Against Kobi Alexander

    Prosecutors filed new charges against Kobi Alexander, former chief executive of Comverse last week, alleging that Alexander attempted to bribe an unidentified person $5 to take the blame for manipulating the timing of stock options at the company. Alexander was recently arrested in Namibia, where he had fled after being charged by US officials with […]

    / Oct 17, 2006 at 12:06 PM
  • Apple, Back Dating, Steve Jobs

    Steve Jobs: Fairly Typical Backdater

    We pointed out last week that Apple has admitted that Steve Jobs played a role in backdating stock options at the company that is very similar to that of CEOs who have been indicted on criminal charges. And, as it turns out, Holman Jenkins—one of the smartest business writers around—agrees with us. “All in all, […]

    / Oct 12, 2006 at 9:34 AM
  • Back Dating, Kobi Alexander

    Kobi Alexander’s Namibian Hideaway: Not Exactly Roughing It

    Guess who is living here? That’s right. It’s Kobi. We kind of imagined that Kobi Alexander’s hideout would look something like Luke Skywalker’s childhood home on Tatooine—all desert plains and little sand igloos. But that’s because we don’t know much about Namibia. As it turns out, he’s staying at a place that looks like a […]

    / Oct 10, 2006 at 4:18 PM
  • Apple, Back Dating

    Is Steve Jobs the Next Kobi Alexander?

    So Steve Jobs apologized for the stock options chicanery at Apple today, which the company admitted he knew about at the time. Weirdly, the coverage we’ve come across on this keeps focusing on the fact that Jobs did not “receive or otherwise benefit” from the backdated options. But we know from Comverse that this is […]

    / Oct 5, 2006 at 12:16 PM
  • Back Dating, Kobi Alexander

    Kobi Out On Bail

    Calling Kobi Alexander a “flight risk” is a bit like calling a fish a “swimming risk.” The man is currently the poster-child for international fugitives. So it is more than a bit shocking that a judge in Namibia granted Kobi bail earlier today. The US wants Kobi extradited on a 32-count indictment stemming from backdating […]

    / Oct 3, 2006 at 10:02 AM
  • Back Dating, Kobi Alexander

    Kobi Alexander Wants To Be Released On Bail

    Kobi Alexander must not live in the same reality as the rest of us. In our reality, fugitives discovered hiding out on a distant continent don’t get released on bail when they are caught. In Kobi’s reality, the fugitives totally get set loose. Especially if they promise they’ll come back! So which reality does controls […]

    / Sep 28, 2006 at 5:18 PM
  • Back Dating

    Where In The World Is Kobi Alexander: Namibia, That’s Where.

    It looks like one of our favorite games—Where In the World Is Kobi Alexander—is finally coming to an end. He’s been arrested in Namibia, according to the Wall Street Journal, where he is being held pending extradition to the US. You remember Kobi, right? He’s Comverse founder who was charged by the U.S. Attorney’s office […]

    / Sep 27, 2006 at 10:45 AM
  • Back Dating, SOX

    Options Timing May Prove a Boon To Hedge Funds

    The tone of this Bloomberg story on how dozens of companies are finding that their options timing shenanigans are getting them in hot water with bondholders strikes us as a little bit one-sided. Here’s the lede, with emphasis added. As soon as Vitesse Semiconductor Corp. said it was under investigation for securities law violations that […]

    / Sep 12, 2006 at 4:26 PM
  • Back Dating

    The End of Options?

    Back-dating, spring-loading, bullet-dodging. There are so many ways to run into trouble with timing options grants, the question arises—is it worth it to keep up the practice. At some point the costs of internal controls necessary to ensure nothing underhanded is occurring may exceed the benefit to the company of avoiding cash payouts. Earlier accounting […]

    / Sep 11, 2006 at 10:34 AM
  • Back Dating, Kobi Alexander

    Where In The World Is Kobi Alexander?

    Here at DealBreaker headquarters we have enjoyed playing the game of “Where In the World is Kobi Alexander.” Tipsters have written to say he is in Israel. Others have written to say that he left Israel for Switzerland, hoping to take advantage of the laws that protected Marc Rich for so many years. Now word […]

    / Aug 24, 2006 at 11:30 AM
  • Back Dating

    Has Kobi Alexander Fled The Country?

    Where is accused backdating fraudster Kobi Alexander? Yesterday federal prosecutors charged the Comverse CEO and two other former Comverse executive with running an elaborate options dating scheme that included a “slush fund” of backdated options used to reward favored employees and recruit executives to the company. The two other executives turned themselves in but Alexander […]

    / Aug 10, 2006 at 12:15 PM
  • Back Dating

    This Afternoon In Backdating: Comverse

    Federal prosecutor Peter McNulty announced the second criminal case against alleged backdaters, naming Comverse Technology Inc. former Chief Executive Officer Kobi Alexander and two other Comverse executives as accused backdaters. A picture of the SEC-Justice theory of criminal backdating is starting to emerge. This case shares with the Brocade case a few elements. First, the […]

    / Aug 9, 2006 at 1:44 PM
  • Back Dating

    Today in Backdating: Pixar

    Pixar is the latest company to come under scrutiny for options timing. In 2000, the animators awarded its creative director stock options dated on a day when its shares were within a dollar of its low for the year, according to reports. This comes just days after it was revealed that Apple, headed by Pixar […]

    / Aug 9, 2006 at 12:41 PM
  • Back Dating

    Greg Reyes Free On $2M Bail

    The first criminal backdating case got under way yesterday with the arraignment of Greg Reyes, the former Brocade CEO charged by federal prosecutors with manipulating the timing of stock options granted to his employees. The judge set his bail at two million clams. That might seem pretty steep unless you recall that while he was […]

    / Aug 3, 2006 at 9:08 AM
  • Back Dating

    First Backdating Case Hits This Afternoon

    CNBC’s SquawkBlog is reporting that former Brocade CEO Greg Reyes will be indicted on criminal charges by federal prosecutors and charged with civil securities fraud by the SEC this afternoon. The SEC and US Attorney’s Office will hold a joint press conference at 2 PM California time, according to a SquawkBlog item penned by Charlie […]

    / Jul 20, 2006 at 12:34 PM
  • Back Dating

    Brocade Backdating

    On SquawkBlog, Charlie Gasparino expands on his reporting on the possibility that former Brocade CEO Greg Reyes will find himself the defendant in the first options backdating case brought by the US government. The big question is whether Reyes, who resigned from Brocade more than a year ago, will be charged criminally by the US […]

    / Jul 20, 2006 at 9:06 AM
  • Back Dating

    Updating Backdating

    The story of SEC plans to launch the first options timing case continues to bend and wind. Yesterday CNBC’s Charlie Gasparino was the first to have the story that the SEC was said to be ready to launch its first backdating case in the form of a civil suit against Brocade Communications, or possibly its […]

    / Jul 18, 2006 at 2:17 PM
  • Back Dating

    First Backdating Case On Its Way?

    The first case arising from accusations of backdating stock options for executives may be filed by the SEC within a month, according to lawyers familiar with the case who have spoken to CNBC’s Charlie Gasparino. Gasparino’s sources say the case will mostly likely be a civil suit against former Brocade Communications CEO Greg Reyes. Apparently […]

    / Jul 17, 2006 at 11:13 AM
  • Back Dating

    In Defense of ‘Backdating’

    We hate deflating a good scandal. Really. We kind of live for them. But we have to admit that Holman Jenkins asks an obvious question about backdating that goes a long way to undermine the idea that it was a shady practice meant to secretly inflate executive compensation: You also have to ask yourself a […]

    / Jul 12, 2006 at 4:02 PM
  • Back Dating

    Paul Atkins (Hearts) Backdating

    Paul Atkins may be our favorite SEC commissioner. Unlike that prissy little commissioner Cynthia Glassman who says that some backdating is “clearly illegal,” Paul emphasized in a recent speech the fact that “well-timed” options can be a totally rational and inexpensive way to compensate executive. Hmm, where did we hear that before? And wouldn’t you […]

    / Jul 7, 2006 at 1:05 PM
  • Back Dating

    Making Money From Backdating

    We’re glad to see that financial institutions are taking up our suggestion and spending time running the models to see who will be the next target of an SEC-Wall Street Journal-Board of Directors investigation into backdated options. It’s a relatively easy set of numbers to crunch, so there is no reason why anyone who is […]

    / Jul 3, 2006 at 11:11 AM
  • Back Dating

    Backdating Investigation Delays Semtech 10-Q

    No one will be surprised to learn that Semtech won’t file its 10-Q today. Recently the semi-conductor manufacturer came under scrutiny when it was discovered that it had repeated granted options to executives shortly before sharp rises in the share price. But now it’s official. In a press release filed with the SEC moments ago, […]

    / Jun 14, 2006 at 5:10 PM
  • Back Dating

    How To Profit From Backdating

    MarketWatch’s Alistair Barr has a good backgrounder on short-sellers, in the news these days in part because of allegations of naked-short selling of Vonage. We haven’t seen anyone mention this so we’re just going to go ahead and bring it up ourselves. Shouldn’t there be a good deal of money to be made shorting yet-to-be-discovered […]

    / Jun 13, 2006 at 4:45 PM

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