Fasb backdating stock options

One of our central tenets is that it is up to boards of directors, as they are influenced by market forces, to determine how to fairly compensate company personnel, and that shareholders need full and transparent disclosure about executive pay in order to make informed decisions about who to elect as directors.Stock Option Abuses and Improper Practices As the use of options compensation has increased, however, we have seen some abuses as well.Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants.

Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting.Therefore, we focus on ensuring that the description of a company's compensation decisions and practices in its disclosure documents is sufficiently transparent so that investors can properly assess the information and reach their own conclusions to questions such as whether the compensation committee is making sound and informed judgments about executive pay, how assets of the company are being used for compensation, and what incentives and rewards are being provided to management.It is not the role of the Commission to judge what constitutes the "right" level of compensation or to place limits on what management and other employees are paid.To date, the Commission has charged two issuers and fourteen individuals (affiliated with eight issuers) with improper stock option grant practices.Of the individuals charged, seven have settled, and seven are litigating.

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