As if we really needed more of this.
Cablevision Systems Corp., a New York-area cable TV systems operator, said Tuesday it would delay filing its second-quarter earnings and restate prior results because of a review into the pricing and timing of stock options.
Great...
Maybe it's because I try to be a "glass half full" kind of guy, I hope this is just a case of beaurocracy run amok, but to be real honest, it's getting harder to do that.
The company said that previously issued results dating as far back as Jan. 1, 1997 shouldn’t be relied upon. Cablevision became the latest of dozens of companies to run into trouble with its stock options practices.
Oh, no problem, don't trust anything we said previously. Besides, it's only money...
Many problems with stock options stem from a practice called backdating, under which insiders try to make the rewards more lucrative by assigning a date to the grant at which the stock’s price was lower.
Everybody's trying to get as close to the line as they can, without going over it. Five yard penalty for offsides.
More than 60 companies are under scrutiny from regulators because of stock options practices and others are conducting or have completed internal probes into their practices.
What? Trying to keep up with the Dow Jones?
Apple Computer Inc. rattled investors by disclosing last week that its options trouble was so deep that its financial results reported dating back to September 2002 can’t be trusted.
Trust. Now there's an underperforming commodity these days.
Other companies under regulatory scrutiny for stock options practices include Barnes & Noble Inc., Home Depot Inc., McAfee Inc., Michaels Stores Inc., Monster Worldwide Inc., RSA Security Inc. and VeriSign Inc.
Corporate America apparantly needs a wake up call. I hope stakeholders of all stripes give them one.
Comment Preview