Months backdating case sentence reyes securities ceo corporate scandals justice
Some people told the Board that a requirement to recognize compensation cost might bring additional discipline to the use of employee stock options.
Unless and until the stock price rises sufficiently to result in a dilutive effect on earnings per share, the current accounting for most fixed stock options treats them as though they were a "free good." Stock options have value--employee stock options are granted as consideration for services and thus are not free.
The FASB fought long and hard for a tougher standard than FAS 123, but accounting firms like Arthur Andersen fought vigorously to derail the FASBs attempts to require firms to book stock options when they are granted.
Appendix B extends the Appendix A illustration to a situation where half the labor time is devoted to generating revenues and half the labor time is devoted to generating a software asset that has unrealized value appreciation due to labor added each year.85.
Is Gregory Reyes being made Silicon Valley's poster boy for backdating of stock options?
Executives at Broadcom, Mc Afee and Comverse Technology have been able to evade federal criminal charges, but the defense may have been overconfident in avoiding using witnesses on Reyes' behalf.
This is the not the first case brought by the government against Reyes, who had been found guilty on 10 counts of backdating options in 2007, where he was fined million and sentenced to 21 months in prison.The feds say no way, since Karatz lied to both KB lawyers and independent auditors about the concealment.Instead, "the record readily establishes that [Karatz] used Hirst to perpetrate a fraud," according to papers filed by the prosecution.(AP Photo/Paul Sakuma, file) less FILE - In this July 26, 2007 file photo, former Brocade Communications Systems Inc.Chief Executive Gregory Reyes and his wife, Penny, leave the federal building in San Francisco. more**FILE**Brocade's former CEO Gregory Reyes, walks into a federal courthouse in San Francisco, in this Wednesday, Aug. Reyes either masterminded a stock options backdating scheme designed to defraud investors, or fell victim to murky accounting laws and heightened public scrutiny to corporate accounting errors, lawyers said Monday, June 18, 2007.