May 30, 2006 – University of Iowa researcher Erik Lie conducted a study that showed more insider tampering with stock options than ever before reported. Executives were backdating their stock options to when their company’s stock was at its lowest point.
“As actually practiced, it was stealing, pure and simple,” according to Geoffrey Colvin in CNN Money. Backdating stock options enabled each executive to jury-rig their gains at the expense of the shareholders, the website reported.
Author Colvin said “executives were robbing their shareholders.” He reported this has been happening for untold time. Only passage of an SEC rule in 1992 first forced companies to report such details about executive stock options.