“If he had just said, ‘I did it, I didn’t realize it was wrong’ … Of the backdating counts Karatz was acquitted on, Dick said most jurors believed the actions were “sleazy and unethical, but we couldn’t find the evidence” to convict.After the public outcry over backdating, many firms began scheduling option grants.
Karatz, 64, is one of the most prominent corporate executives to be charged criminally in the government’s long-running crackdown on options backdating. The scheme enabled him to make more than million in “secret pay,” Assistant U. Revenue soared under his watch, reaching a record billion in 2006.However, it can be permissible under certain circumstances.For instance, one may backdate an insurance claim if there was an unavoidable delay between the date the insured event occurred and the day the claim was made.The practice of allowing a mutual fund shareholder to use previous purchases of the fund's shares so as to qualify for reduced commission charges on subsequent purchases.Backdating is used when a fund offers declining proportional sales charges on larger purchases.
These returns are explained by measures of CEOs’ incentives and ability to influence stock prices.