Stock Options: The Backdating Issue

[Excerpt] Employee stock options are contracts giving employees the right to buy the company’s common stock at a specified exercise price, at a specified time or during a specified period, and after a specified vesting period. The value of the option when granted lies in the prospect that the market price of the company’s stock will increase by the time the option is exercised (used to purchase stock). At the grant date for the options, rather than selecting an exercise price based on the current market price for the stock, officials at some companies have selected a prior date with a lower market price; that is, they backdated stock options to an earlier grant date. If this backdating occurred without public disclosure, the recipient of the stock options received increased compensation in violation of Securities and Exchange Commission (SEC) regulations, generally accepted accounting rules, and tax laws. Some backdating is said to involve “sloppiness,” not fraud. The backdating of stock options has imposed costs on shareholders, employees, bondholders, and taxpayers. A corporate official who has profited from undisclosed backdating of stock options may not be responsible or even knowledgeable of the backdating. “Nonqualified” stock options, which have no special tax criteria to meet, are the focus of the backdating controversy primarily because they can be granted in unlimited amounts. The magnitude of stock option grants grew dramatically in the 1990s, subsequent to passage of the Omnibus Budget Reconciliation Act of 1993, a stock market boom, and revised accounting rules. Recent corporate disclosure changes have reduced the opportunities and rewards for backdating stock options. Empirical studies about backdating have been done by academics and investigative journalists. Four recent regulatory actions may have reduced the backdating of stock options, but problems persist. On December 16, 2004, the Financial Accounting Standards Board issued new rules requiring companies to subtract the expense of options from their earnings. After August 29, 2002, the Sarbanes-Oxley Act required that companies notify the SEC within two business days after granting stock options. In 2003, the SEC required increased disclosure of stock option plans. The SEC issued enhanced option grant disclosure rules effective December 15, 2006. Policy options to further reduce backdating and other timing manipulation include changes in SEC regulations and a change in the tax law. The SEC, various state prosecutorial, and Department of Justice (DOJ) probes into backdating abuses are ongoing. In addition, many firms have mounted their own internal probes into possible abuses. By November 2007, the SEC’s investigation caseload had fallen from a peak of 160 to about 80, and the SEC had brought civil enforcement actions against seven companies and 26 former executives associated with 15 firms. And according to reports from the DOJ, there were at least 10 criminal filings against defendants for backdating. As of January 2, 2008, the only CEO to be convicted of charges related to backdating was Greg Reyes, former Brocade CEO. This report will be updated as issues develop or new legislation is introduced

An estimate of the uptake of atmospheric methyl bromide by agricultural soils

Published estimates of removal of atmospheric methyl bromide (CH3Br) by agricultural soils are 2.7 Gg yr−1 (Gg = 109 g) [Shorter et al., 1995] and 65.8 Gg yr−1 [Serça et al., 1998]. The Serça et al. estimate, if correct, would suggest that the current value for total removal of atmospheric CH3Br by all sinks of 206 Gg yr−1 (based on Shorter et al., 1995) would be 30% too low. We have calculated a new rate of global agricultural soil uptake of atmospheric CH3Br from a larger sampling of cultivated soils collected from 40 sites located in the United States, Costa Rica, and Germany. First order reaction rates were measured during static laboratory incubations. These data were combined with uptake measurements we reported earlier based on field and laboratory experiments [Shorter et al. 1995]. Tropical (10.2°–10.4°N) and northern (45°–61°N) soils averaged lower reaction rate constants than temperate soils probably due to differing physical and chemical characteristics as well as microbial populations. Our revised global estimate for the uptake of ambient CH3Br by cultivated soils is 7.47±0.63 Gg yr−1, almost three times the value that we reported in 1995

Multi-environment QTL mixed models for drought stress adaptation in wheat

Many quantitative trait loci (QTL) detection methods ignore QTL-by-environment interaction (QEI) and are limited in accommodation of error and environment-specific variance. This paper outlines a mixed model approach using a recombinant inbred spring wheat population grown in six drought stress trials. Genotype estimates for yield, anthesis date and height were calculated using the best design and spatial effects model for each trial. Parsimonious factor analytic models best captured the variance-covariance structure, including genetic correlations, among environments. The 1RS.1BL rye chromosome translocation (from one parent) which decreased progeny yield by 13.8 g m(-2) was explicitly included in the QTL model. Simple interval mapping (SIM) was used in a genome-wide scan for significant QTL, where QTL effects were fitted as fixed environment-specific effects. All significant environment-specific QTL were subsequently included in a multi-QTL model and evaluated for main and QEI effects with non-significant QEI effects being dropped. QTL effects (either consistent or environment-specific) included eight yield, four anthesis, and six height QTL. One yield QTL co-located (or was linked) to an anthesis QTL, while another co-located with a height QTL. In the final multi-QTL model, only one QTL for yield (6 g m(-2)) was consistent across environments (no QEI), while the remaining QTL had significant QEI effects (average size per environment of 5.1 g m(-2)). Compared to single trial analyses, the described framework allowed explicit modelling and detection of QEI effects and incorporation of additional classification information about genotypes

A pre and post election comparison of the affirmative action policies of South African listed companies

A pre and post election comparison of the affirmative action policies of South African listed companiesAffirmative action can be described as the enforced empowerment and occupational advancement of historically disadvantaged groups. These disadvantaged groups can only be empowered and occupationally advanced once opportunities for occupational advancement, personal development and an improved quality of life have been created. In this article the influence of the first democratic election of 27 April 1994 on affirmative action policies o f the South African companies listed on the Johannesburg Stock Exchange is investigated. Subsequent to the election a marked increase in the percentage o f listed companies applying affirmative action policies has been observed in respect of occupational advancement and personal development. An increase in the quality of life benefits and facilities made available to all employees is not, however, always evident

ANKLE JOINT LOADING DURING THE DELIVERY STRIDE IN CRICKET MEDIUM- FAST BOWLING

To date, biomechanical research investigating the aetiology of cricket injuries has studied the kinetics and kinematics of associated movements in isolation. The aim of this study was to apply inverse dynamics to investigate ankle joint forces during the delivery stride using four Basler 200 Hz cameras synchronised to two Kistler 9581B force plates with Peak Motus 9.2. Although peak ankle joint moment in the sagittal plane was greater for the front foot (mean: 3.21 ± 1.71 Nm⋅Kg-1) in relation to the back foot (mean: 1.70 ± 0.87 Nm⋅Kg-1); average rate of joint loading was 246% greater in the frontal plane for the back foot (mean: 1.11 ± 0.82 Nm⋅Kg-1⋅s-1) compared to the front foot (mean: 0.45 ± 0.20 Nm⋅Kg-1⋅s-1). Findings would suggest that whilst the front foot is prone to acute injuries, the back foot may be more susceptible to overuse injuries such as lateral ankle instability

Structural basis for substrate gripping and translocation by the ClpB AAA+ disaggregase.

Bacterial ClpB and yeast Hsp104 are homologous Hsp100 protein disaggregases that serve critical functions in proteostasis by solubilizing protein aggregates. Two AAA+ nucleotide binding domains (NBDs) power polypeptide translocation through a central channel comprised of a hexameric spiral of protomers that contact substrate via conserved pore-loop interactions. Here we report cryo-EM structures of a hyperactive ClpB variant bound to the model substrate, casein in the presence of slowly hydrolysable ATPγS, which reveal the translocation mechanism. Distinct substrate-gripping interactions are identified for NBD1 and NBD2 pore loops. A trimer of N-terminal domains define a channel entrance that binds the polypeptide substrate adjacent to the topmost NBD1 contact. NBD conformations at the seam interface reveal how ATP hydrolysis-driven substrate disengagement and re-binding are precisely tuned to drive a directional, stepwise translocation cycle

The Effect of Question Order on Outcomes in the Core Outcome Set for Brief Alcohol Interventions Among Online Help-Seekers: Protocol for a Factorial Randomized Trial

Background: A core outcome set (COS) for trials and evaluations of the effectiveness and efficacy of alcohol brief interventions (ABIs) has recently been established through international consensus to address the variability of outcomes evaluated. / Objective: This is a protocol for studies to assess if there are order effects among the questions included in the COS. / Methods: The 10 items of the COS are organized into 4 clusters. A factorial design will be used with 24 arms, where each arm represents 1 order of the 4 clusters. Individuals searching online for help will be asked to complete a questionnaire, and consenting participants will be randomized to 1 of the 24 arms (double-blind with equal allocation). Participants will be included if they are 18 years or older. The primary analyses will (1) estimate how the order of the clusters of outcomes affects how participants respond and (2) investigate patterns of abandonment of the questionnaire. / Results: Data collection is expected to commence in November 2020. A Bayesian group sequential design will be used with interim analyses planned for every 50 participants completing the questionnaire. Data collection will end no more than 24 months after commencement, and the results are expected to be published no later than December 2023. / Conclusions: Homogenizing the outcomes evaluated in studies of ABIs is important to support synthesis, and the COS is an important step toward this goal. Determining whether there may be issues with the COS question order may improve confidence in using it and speed up its dissemination in the research community. We encourage others to adopt the protocol as a study within their trial as they adopt the ORBITAL (Outcome Reporting in Brief Intervention Trials: Alcohol) COS to build a worldwide repository and provide materials to support such analysis. / Trial Registration: ISRCTN Registry ISRCTN17954645; http://www.isrctn.com/ISRCTN17954645 / International Registered Report Identifier (IRRID): PRR1-10.2196/2417

A PRELIMINARY ELECTROMYOGRAPHIC INVESTIGATION INTO SHOULDER MUSCLE ACTIVITY IN CRICKET SEAM BOWLING

2 The aim of this investigation was to describe and compare surface electromyographic activity of shoulder musculature during cricket seam bowling between two elite bowlers with (bowler A) and without (bowler B) shoulder pathology. Activity of seven muscles were recorded at 500 Hz with a digital camera sampling at 210 Hz used to define phases within the movement. Whilst both the duration of the movement and ball velocity were similar between bowlers (bowler A: duration = 0.89 ± 0.04 s, ball velocity = 27.08 ± 1.21 m.s-1; bowler B: duration = 0.72 ± 0.02 s, ball velocity = 26.59 ± 1.49 m.s-1), variations in muscle activity particularly for biceps brachii and infraspinatus were established. Further research utilising larger sample sizes is required to establish if such variations occur as a consequence of shoulder pathology or if these are due to other contributing factors