Friday, September 22, 2006
Spooky: Option Grant to Dead Person
Cablevision noted in the 10-Q it filed earlier this week that its investigation into stock option granting practices found one creepy result:
"In addition, two awards of options and one option modification were also incorrectly accounted for as having been granted to employees or modified for employees. One of these two awards was to the Company’s former compensation consultant (which was subsequently cancelled in 2003) and the other award related to an executive officer whose death occurred after the stated grant date of the award and before the actual grant date."
So far, this is the only company that has admitted to granting options to someone who was already dead. All kinds of beyond the pale activity with respect to options grants has been investigated by the SEC over the past few months; this gives the Enforcement Division one new twist on these issues.
Pat McGurn over at ISS has an entertaining blog posting on the Cablevision grant.