Sunday, December 19, 2004

CEOs Robbing from Their Owners

Ever notice how huge stock option awards are often given to executives just ahead of bullish company news? The Securities and Exchange Commission apparently has.

Last Tuesday, Analog Devices, a maker of integrated circuits, disclosed that the S.E.C. had requested information about the timing of option grants given to company executives and directors during the last five years. In its disclosure, the company noted that its grants in some years "occurred shortly before our issuance of favorable annual financial results." The company added that it believed other companies had received similar inquiries from the regulator.

-- From Gretchen Morgenson of the Times.


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