Ethics of stock option backdating boy dating story submissive
In the past few years, CEOs have become substantially more likely to be removed from their positions due to ethical misconduct or scandals, even though the number of CEOs dismissed for such reasons remains quite low overall, according to a new study by Per-Ola Karlsson, De Anne Aguirre, and Kristin Rivera of Pw C/Strategy&.At Globally, dismissals for ethical lapses rose from 3.9 percent of all successions in 2007–11 to 5.3 percent in 2012–16, a 36 percent increase.
But what about spring-loading, the forward-looking cousin of backdating?
Entering adulthood in a boom or a bust also can have implications for people’s behavior at work, even decades later.
For example, CEOs who begin their careers in prosperous times tend to use riskier financial strategies than CEOs who first enter the workforce in recessions. Yes, at least when you analyze their stock backdating behavior, a common yet almost always illegal practice throughout the 1990s and 2000s.
Guilty or not, companies accused of backdating clearly would have known what would be a favorable option grant date.
But a company suspected of spring-loading cannot be said to have that advantage, and executives can argue, truthfully, that there is no way to know for certain how the market will react to impending news.