Divesh Sharma, a professor at Kennesaw State University whose research focuses on company clawback policies, told Market Watch that, until 2006, few companies had them.“In 2003, there were only four, by my count,” he said. Suddenly in 2006, I counted 150.” According to Sharma, Wells Fargo had no policy until 2008. Bush signed the Emergency Economic Stabilization Act, which established the Troubled Asset Relief Program to bail out big banks battered by the financial crisis.On September 27, 2006, he was arrested in Namibia after hiding in Windhoek with his family, where he had bought a house at a country club.If extradited to the US and convicted, he faces 25 years in prison.We are confident that these claims will be disposed of in short order by the Court.” In the original suit against Comverse executives, lead plaintiff and Comverse investor the Menorah Group charged that Alexander, Sorin, and other officials, including former chief financial officer David Kreinberg, had falsified financial statements to inflate the company’s stock price and to mislead investors about the true condition of the company.“Central to the alleged fraud was a stock option backdating scheme, in which Comverse granted undisclosed ‘in-the-money’ stock options to its employees by backdating its stock option grants,” noted court documents.
Like finance chief David Kreinberg and former senior general counsel William Sorin, Alexander faces charges related to alleged options backdating or other actions related to stock options: conspiracy, fraud, money laundering and making false filings to the Securities and Exchange Commission.
They would have been very, very rich if they hadn't cheated at all. We're talking about companies like Apple Computer, I mean they're involved in this as well.
SLOAN: Well with Apple and also with Microsoft, which is also involved with this, these are real companies and it looks to me like at Microsoft that was just a policy that somebody in personnel or somewhere did the options at the lowest price of the month that people signed up or something like that. In the case of Apple I think it's something similar where there was a policy.
orced forfeiture of million in future compensation by Chairman and CEO John Stumpf is neither the biggest nor the toughest ever.
The same goes for the giveback of million in unvested share awards by the bank’s former community-banking head, Carrie Tolstedt, the analysis, supported by Audit Analytics, found.