This Afternoon In Backdating: Comverse

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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 feds seem to be targeting executives who went around their company's compensation committee. Second, the feds are not shy about targeting executives who approved backdated stock options for others. That is to say, there doesn't need to be a direct personal benefit to the executives granting the options for them to be criminal. McNulty today accused the Comverse execs of creating an options "slush fund" for favored employees.
By the way, have you seen the man pictured above? That's Alexander, who has not surrendered to the authorities and is currently considered a fugitive.

Comverse Ex-Chief Alexander Charged in Options Case
[Bloomberg]

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