Doc of the Day: Lessons from the Options Backdating Scandal

Want to avoid repeating the past? Read Keker & Van Nest’s look back at the 2006 “options backdating” scandal:

“When the Wall Street Journal ran its famous ‘Perfect Payday’ article in 2006, it unleashed a torrent of internal investigations at hundreds of public corporations, which in turn led to billions of dollars in accounting restatements, as well as scores of shareholder and derivative lawsuits, SEC proceedings, and for an unlucky few, criminal prosecutions. It was as if a Vesuvius had erupted, with the flow of lava freezing in place a decade of compensation practices.”

The first lesson?

“… much of the energy devoted to options backdating litigation was probably an enormous waste of resources.”

But that’s just the first layer. Read the full update, Lessons from the Options Backdating Scandal: The Archeology of Compensation Litigation, from Keker & Van Nest»