Comverse options backdating
The granting of an "in the money" option clearly negates such an alignment.
In its most traditional form, backdating is accomplished by the intentional modification of the minutes of the meeting in which an option grant is authorized.
S., the preliminary results of a study reported in the Chicago Tribune appear to suggest that the practice is nevertheless present in this country.6 Although only a preliminary report has been compiled to date, the study notes that, following the examination of 66 of Canada's largest corporations, exchange practices in line with those of backdating were found.
While conclusive evidence has yet to be reported, the study highlights the fact that the opportunity was present.
A rather wide range of documents could be potentially significant.
To begin, a company's stock option plan, as well as any other written policies and procedures may provide a preliminary understanding of grant practices.
Following the significant amount of press surrounding backdating cases, some companies are starting to conduct internal inquiries into their own option granting practices.
As opposed to an "at the money" option, an "in the money" option holds an intrinsic value; there is already a built-in profit at the time of the grant.Kreinberg was also forced to pay .4 million in order to settle civil fraud charges.The situation is similar for Comverse's former general counsel as well as former CEO, Jacob Alexander.With Canadian corporate culture generally considered akin to that of the United States, the question of whether or not options backdating will reach scandalous proportions North of the border inevitably presents itself.In anticipation of this possibility, there is certain information that all company directors should now be aware of.
The notice concludes with a warning that enforcement action may be taken if the CSA is made aware of any non-compliance with securities legislation.