There are a relatively few people that either profited or benefited enormously from the Options Backdating scandals. Lets assume that the top 10 executives in each of the high tech companies got the most number of stock options (> 70% of the grants). The rest of the employees also benefited but not as much.Most of the companies currently under inquiry or investigation from the SEC are high tech, most have good products, a valuable franchise, over 1000 employees and many thousand customers that depend on them.Most of these companies have to restate multiple years earnings due to tax and earnings implications.
This cost comes from current year and next years bottom line. Add to the fact that customers get nervous when a company which was doing well now cannot state earnings for 3-4 quarters, and put off significant purchases, there is a significant risk these companies face after they have been asked to probe into their option grants.Many of these companies have fired their top 2-3 executives - typically the CEO, CFO and Legal Counsel.The point is: There are 1000 other employees and thousands of customers who suffer as a consequence.Question: At what cost are we getting justice? Many of these companies will have to trim earnings, revenues and cut costs (possibly lay off people).Is it not possible to just make sure the top executives resign and the rest of the company moves on - pay a one-time fine, pay taxes (estimated amounts) and move on with their lives? "It is the greatest good to the greatest number of people which is the measure of right and wrong.
" - Jeremy Betham.
.Article Source: http://EzineArticles.com/?expert=Mukund_Mohan.
By: Mukund Mohan
