Depot backdating signs he is not interested in dating you

Home Depot’s 12-person board of directors is chaired by Nardelli’s successor, Frank Blake; the company considers 10 of the 11 other members as independent, according to company spokesman Jerry Shields.The announcement comes amidst shareholder resolutions at a growing number of companies that call for shareholder approval of the pay packages for CEOs and other top executives.Option backdating provides a setting in which the GC’s responsibility is high because a contract is involved.Once again, we find a significantly higher turnover rate at backdating firms than control firms.Heavily criticized for the hefty pay of outgoing chief executive officer Robert Nardelli, retailer Home Depot announced Monday that it has changed the approval process for CEO compensation.Company by-laws will now require that two-thirds of independent board members approve any such compensation; previously, only a simple majority was needed.

The role of the GC in the integrity of reported information has received little attention in prior academic research.admitted late Wednesday that it "routinely" backdated stock options over a 19-year period and that the company retroactively added employee names or changed the number of options granted without board approval."In almost every instance, the stock price on the apparent approval date was higher than the price on the stated grant date," Home Depot said in a statement.The stock price on the approval date was also almost always higher than the price on the date to which the options were backdated.Forced turnover occurs in 36 percent of the accused firms compared to only 10.6 of the control firms.The turnover rates are similar for CEOs and CFOs, indicating they are held equally accountable.Turnover remains significantly higher but is reduced under two conditions: (1) stock returns are more positive, or (2) the CEO is a firm founder.Turnover is increased when the backdating allegation results in a regulatory investigation or a restatement of the financials.The following post comes to us from Ed Swanson, Professor and Durst Chair at the Mays Business School at Texas A&M University; Jap Efendi of the Department of Accounting at The University of Texas at Arlington; Rebecca Files of the Naveen Jindal School of Management at The University of Texas at Dallas; and Bo Ouyang of Penn State Great Valley., we investigate how the Board of Directors and the managerial labor market (two private-sector monitoring mechanisms) respond to an allegation of option backdating.Law360, New York (December 7, 2006, AM EST) -- Home improvement giant Home Depot said Wednesday that company officials backdated stock option grants for about 20 years, and that the practice cost it about 0 million in unrecorded expenses.A subcommittee of the company’s Audit Committee undertook the internal review in August with independent outside counsel, Hogan & Hartson...


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