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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: RealMuLan who wrote (56886)	9/22/2006 4:05:11 PM
From: mishedlo	Read Replies (1) of 116555

Cablevision Systems awarded stock options to an executive after his death in 1999, then backdated them to give the illusion they were granted when he was alive, according to Bloomberg. * Former Vice Chairman Marc Lustgarten was awarded the options after he died, the Wall Street Journal reported late yesterday. * Lustgarten had worked for the company since 1975 and had been a vice chairman since 1991. * It is unclear whether the estate of Mr. Lustgarten exercised the options, the Journal said. * Cablevision is one of about 100 companies currently under federal investigation for allegedly backdating or manipulating options grants. * Stock options give the recipient the right to purchase shares at a fixed exercise price, typically the market price on the day the options were granted. * Backdating the options grant to a date when prices were lower increases the potential value of the options. * Harvey Pitt, former chairman of the SEC, called the grant to the deceased executive "really bizarre" and "absolutely crazy," the Journal said.

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