Monster backdating

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High-profile companies including Apple Computers, United Health Group, Broadcom, Staples, Cheesecake Factory, KB Homes, Monster.com, Brocade Communications Systems, Inc., Vitesse Semiconductor Corp.and dozens of lesser-known technology firms were implicated in the scandal. .) Read on to find out how the scandal emerged, what brought it to and end and what you can learn from it now.When senior executives realized that they could look backwards for the date during which their firm's stock was at its lowest trading price and then pretend that was the date they were issued the stock grants, a scandal was born.By faking the issue date, they could guarantee themselves in-the-money options and instant profits.A 1982 amendment to the tax code created an incentive for executives and their employers to work together to break the law.The amendment labeled executive compensation in excess of

High-profile companies including Apple Computers, United Health Group, Broadcom, Staples, Cheesecake Factory, KB Homes, Monster.com, Brocade Communications Systems, Inc., Vitesse Semiconductor Corp.and dozens of lesser-known technology firms were implicated in the scandal. .) Read on to find out how the scandal emerged, what brought it to and end and what you can learn from it now.When senior executives realized that they could look backwards for the date during which their firm's stock was at its lowest trading price and then pretend that was the date they were issued the stock grants, a scandal was born.By faking the issue date, they could guarantee themselves in-the-money options and instant profits.A 1982 amendment to the tax code created an incentive for executives and their employers to work together to break the law.The amendment labeled executive compensation in excess of $1 million as unreasonable, and thus not eligible to be taken as a deduction on the firm's taxes.A Scandal Comes to Light A series of academic studies was responsible for bringing the backdating scandal to light.

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High-profile companies including Apple Computers, United Health Group, Broadcom, Staples, Cheesecake Factory, KB Homes, Monster.com, Brocade Communications Systems, Inc., Vitesse Semiconductor Corp.

and dozens of lesser-known technology firms were implicated in the scandal. .) Read on to find out how the scandal emerged, what brought it to and end and what you can learn from it now.

When senior executives realized that they could look backwards for the date during which their firm's stock was at its lowest trading price and then pretend that was the date they were issued the stock grants, a scandal was born.

million as unreasonable, and thus not eligible to be taken as a deduction on the firm's taxes.A Scandal Comes to Light A series of academic studies was responsible for bringing the backdating scandal to light.

Monster's board also created a three-person executive committee for board matters.

They could also cheat the IRS twice, once for themselves since capital gains are taxed at a lower rate than ordinary income and once for their employers since the cost of the options would qualify as a corporate tax write off.

The process became so prevalent that some investigators believe 10% of the stock grants made nationwide were issued under these false pretenses.

From a consumer's perspective, customers rely on companies to provide goods and services.

When those firms have no ethical boundaries, their wares become suspect.

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