 |
 |
|
|
|
||||||||||
|
||||||||||
|
|
|||||||||
|
||||||||||
Testimony on Capitol Hill today did nothing to resolve the ongoing debate over whether spring-loading of stock options is illegal or unethical.
Helen Shaw, CFO.com | US
September 6, 2006
Anytime a corporation makes a decision to benefit itself or its employees at the expense of others, and the decision is based on non-public material information, it is wrong. It is simply a variation of insider trading. The company knows something that it believes will drive the stock price (up or down), and acts to profit from that "inside" information. A fact that get too easily forgotten these days, the company has a fiduciary responsibility to always consider its shareholders first, and an ethical responsibility of honesty to the public. Spring loading violates both of these public trusts.
Posted by Mark Trinske | September 07, 2006 09:56 am
© CFO Publishing Corporation 2009. All rights reserved.