Unh stock options backdating
Considering that nearly 200 companies have been caught in the swarm of scandal surrounding the backdating of stock options, more people are questioning whether backdating is really such a bad thing.Now that Silicon Valley icon Steve Jobs has become one of the highest-profile personalities to become ensnared, perhaps it's really just much ado about nothing. A tempest in a teapot As we've recounted on these pages many times, a stock option gives the holder the right to buy a stock at a certain price -- called the "exercise" or "strike" price -- at some point in the future.REUTERS/Handout/File Former CEO William Mc Guire settled claims with both the U. Securities and Exchange Commission and the company, which had a special committee investigate shareholder claims arising from options pay to top company executives. “The last 18 months have been an extraordinarily challenging period for my family and me,” Mc Guire said in a statement.
Following United Health’s internal report, Mc Guire had agreed to reprice some of those options, reducing their value.
Outright fraud should be dealt with harshly, while other cases, done in plain sight, but out of supposed ignorance, might deserve more of a financial slap on the wrist.
For example, Microsoft's backdating was done as a matter of company policy with new hires; options were granted at the date of the lowest price of the month.
Including that repricing, Mc Guire will have given up more than 0 million, the company said. ” asked Sheryl Skolnick, an analyst at CRT Capital who follows United Healthcare.
“There will be those who will argue that it’s somehow not enough...