Spread of options backdating

Purporting to cover a group of companies with “a total of 1,440 directors,” they discuss such things as “the level of interconnectedness between directors sitting on the boards of companies implicated in the scandal” and “directors who sit on more than one board in the group.” A column in the report’s tables refers to “Director name.” Yet Hodgson disagrees with the contention that the report’s table implies that everyone listed is a director.The key point of the report is the connections between the high-level people involved in these alleged backdating cases, he asserts.“We tried to include all CEOs and CFOs in the survey, as in some cases where option backdating did occur it is the CFOs and CEOs who have been forced out, rather than any directors,” he wrote in an E-mail to Controllers and corporate secretaries have also been implicated.” The report, however, never uses the word “officer” when referring to any of the 120 companies it said were “implicated” in the backdating scandal.Officials of Novellus and Blue Coat criticized The Corporate Library for including them in its list, arguing that regulators haven’t accused them of wrongdoing related to backdating.Companies that are not being probed by the Securities and Exchange Commission or the Department of Justice told that it is unfair to group them with organizations that have received formal inquiries from the SEC and the Do J.“The report seems to suffer from inaccuracies,” Blue Coat Systems spokesman Steve Schick told

Moreover, some of the people listed are not directors at all, but officers of their company.However, he did not join the Novellus board until 2004, a fact that is noted in the report.That is at least three years after the period generally acknowledged to be the time when the wave of backdating occurred.The study also rarely makes a distinction concerning the dates that the directors sat on the boards.For instance, the report shows that, as a director, Neil Bonke serves as a link between the Novellus and Sanmina-SCI boards.

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