Friday, August 25, 2006
Backdating Causes Late Filings to Soar
Forget Sarbanes-Oxley 404. A record number of companies filed their recent quarterly reports late, and the most commonly cited reason was the rapidly growing option backdating scandal.
According to shareholder advisory firm Glass, Lewis & Co., 138 companies with market capitalizations of at least $75 million submitted late-filing notices for the second quarter, up 52 percent from year-earlier levels. Forty-eight of those companies said they postponed their filings because they were conducting investigations into their historical stock-option grants, including such well-known names as Apple Computer Inc., UnitedHealth Group Inc., Monster Worldwide Inc., CA Inc., and Juniper Networks Inc. By contrast, only three companies cited incomplete internal-control assessments as the reason for their delay.
posted by Brian Moran @ 10:37 AM