tag:blogger.com,1999:blog-9208928.post7965084018226195697..comments2024-03-28T14:03:55.912-04:00Comments on Start Making Sense: Nice job, CEOsDaniel Shavirohttp://www.blogger.com/profile/14710628584922961682noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-9208928.post-10450061767039864232015-04-18T16:10:05.383-04:002015-04-18T16:10:05.383-04:00«a paper by Rob Daines (formerly NYU, now Stanford...«a paper by Rob Daines (formerly NYU, now Stanford) on options and executive compensation. Here's the abstract:<br />"In the wake of the backdating scandal,»<br /><br />Option backdating involved enormous amounts (hundreds of millions of dollars) of easily proven tax frauds, such frauds being one of the major reasons why option backdating was done.<br /><br />How many people have been convicted of those felonies?<br /><br />At some point the IRS had started to look into these tax frauds, but the issue apparently "evaporated".<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9208928.post-2650149934913385302015-04-16T12:27:08.933-04:002015-04-16T12:27:08.933-04:00A related story about a former audit client of min...A related story about a former audit client of mine, who should probably remain nameless to protect the guilty.<br /><br />They used to process their options in-house, ie the company secretary would exercise the options on their employees' behalf and send them the net-of-tax proceeds. The CEO went to the company secretary on option exercise day and insisted that she process his options first so he would get the highest price. Presumably he supposed that once the market twigged that it was option exercise day, the share price would fall on account of the dilution.<br /><br />Anyway, I'm pleased to say she always ensured that he was one of the last to be processed.nairobinyhttps://www.blogger.com/profile/02866505500092764029noreply@blogger.com