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Unformatted text preview: Given a year-end price of $85, the intrinsic value of the options at the end of the year was ($85-$30) x 250,000 = $13,750,000. In comparison, had the options been granted at the year-end price when the decision to grant to options actually might have been made, the year-end intrinsic value would have been zero. ACCY 302 (Shin) Class 02 Fall 2009 So far, eighteen CEOs swept out. More than a hundred public companies under federal investigation and over $5 billion in profits erased by restatements. Indictments so far: five former top executives at two companies, Brocade Communications Systems Inc. and Comverse Technology Inc. The toll of the stock options timing affair -- corporate America's scandal of the year -- has been heavy. Federal officials say more prosecutions will be brought in 2007 over manipulation of the timing of stock option grants to enrich top company executives....
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This note was uploaded on 08/30/2009 for the course ACCY 301 taught by Professor Keller during the Spring '08 term at University of Illinois at Urbana–Champaign.
- Spring '08