4,758 research outputs found

    Stock Options: The Backdating Issue

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    [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

    Rating the Suitability of Responsible Gambling Features for Specific Game Types: A Resource for Optimizing Responsible Gambling Strategy

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    A Delphi based study, rated the perceived effectiveness of 45 responsible gambling (RG) features in relation to 20 distinct gambling type games. Participants were 61 raters from seven countries,including responsible gambling experts (n = 22), treatment providers (n = 19) and recovered problem gamblers (n = 20). The most highly recommended RG features could be divided into three groups 1) Player initiated tools focused on aiding player’s behaviour 2) RG features related to informed-player-choice 3) RG features focused on gaming company actions. Overall, player control over personal limits were favoured more than gaming company controlled limits, although mandatory use of such features was often recommended. The study found that recommended RG features varied considerably between game types, according to their structural characteristics. Also,online games had the possibility to provide many more RG features than traditional (offline games). The findings draw together knowledge about the effectiveness of RG features for specific game types. This should aid objective, cost-effective, evidence based decisions on which RG features toi nclude in an RG strategy, according to a specific portfolio of games. The findings of this study will be available via a web-based tool, known as the Responsible Gambling Knowledge Centre (RGKC)

    A spectrometer for the investigation of backscattering of 10-20 keV electrons

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    Fluoride In Drinking Water: A Study Of The Cause And Effects In The Hai District Of Northern Tanzania

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    The Hai District in Northern Tanzania is one of the many areas along the East African Rift Valley where the groundwater contains high levels of fluoride. This study by sampling fluoride levels from water sources in the 52 villages of the Hai District identified two communities where the fluoride levels were high and presented a risk to human health

    Black Nile

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    This music clip is from the CD entitled Field of Play. The band was directed by Dr. Robert Washut.https://scholarworks.uni.edu/jazzband/1007/thumbnail.jp

    Description of properties of binary solvent mixtures

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