James A. Kaplan

Post 9-11 Backdating Issues: The War at Home

Source: http://biz.yahoo.com/seekingalpha/070322/30330_id.html?.v=1

SeekingAlpha

Post 9-11 Backdating Issues: The War at Home

Thursday March 22, 5:04 am ET

James A. Kaplan submits: A recent lead article in the Wall Street Journal, “Companies Say Backdating Used in Days After 9/11” (March 7, 2007), was an obvious attempt to pluck at the readers’ heartstrings. In my case, it worked.

The article reads, in part, ..the nation’s stock markets were closed from Sept. 11 to Sept. 14. When they reopened the following week, the Dow Jones Industrial Average skidded more than 14%, in the worst full week for the blue-chip average since Germany invaded France in May 1940. Scores of companies rushed to grant options during the market’s trough…. some companies said it was pure happenstance, while others said it was intended to help motivate executives through the difficult period. But until recently none had admitted the award dates reflected improper backdating.