RE: Option Backdating:
Think about the cost/benefit balance for those RIM executives, during the 6 years the backdating was going on (December 1996 to July 2006). Think about what's going through the minds of all the execs of other companies, who are now reading that WSJ article:
"If I don't get caught, I get filthy rich. If I do get caught, I have to give the money back, and maybe a bit more. But I'll keep my job, I won't have to admit I did anything wrong, and I won't go to jail. So, the potential downside is small, and the potential upside is huge. And if I'm a successful CEO who has brought lots of hot products to market, (like Jobs) I can get away with anything."
I want to invest in companies whose execs answer A to this multiple-choice question:
If my company's stock has ranged between $7.83 and $25.85 in the last year, and I notice that my stock options for that year have a strike price of $7.83, I will:
A) realise something is not kosher, and insist that it be fixed (before the SEC investigation).
B) say, "Sweet deal. That Caribbean island my wife has been begging me to buy, is now on sale."
C) decide I'm too busy to notice what the strike price is
D) hum this song softly:
They got the money, hey, You know they got away
They headed down south, and they're still running today
Singin', "go on, take the money and run"
songfacts.com |
