Backdating stock

There is no precise rule-of-thumb for determining what level of options overhang is bad for investors but, generally speaking, the higher the number, the greater the risk.If a company has a very high options overhang, it must generate even higher levels of growth in order to provide decent returns to investors net of the overhang's dilutive effects on investor returns.Mc Guire was fined million In November 2012, Dr.Mc Guire purchased Minnesota Stars FC, a league-owned professional soccer team in Minnesota. Mc Guire made a .2 MM gift to the University of Florida to construct and establish the Mc Guire Center for Lepidoptera Research and the Mc Guire Center for Insect Conservation.When Mc Guire joined United, it was an unprofitable regional health maintenance organization with annual revenues around 0 million.When he left, United was one of the largest, most profitable, and most diversified healthcare companies in the world, with more than billion in annual revenues, more than 50,000 employees, and more than sixty million health plan members.James Crouch pleaded guilty last month to charges that he backdated convictions in an effort to shorten or eliminate license suspensions in approximately 50 driving while impaired cases from May 2008 to April 2012.

"I have lost my reputation, my livelihood, my name and the trust of my fellow man. I've embarrassed and humiliated my wife and my family, and I've caused a lot of pain and embarrassment to my profession. You don't have to tell me, I know."Defense attorney Joseph Cheshire said Crouch had become arrogant and took on too many cases, took shortcuts and made serious mistakes."James Crouch would come into this courtroom and act like he was the man," Cheshire said. He took way too many cases because that was his way to prove that he was the man when, in, fact, he wasn't." Witnesses testified during the two-day sentencing hearing this week that many of Crouch's clients in the questionable cases paid him an extra 0 to change the date of their DWI conviction using a legal action to correct clerical errors called a "nunc pro tunc" order and that former District Judge Kristin Ruth unknowingly signed off on the orders.Overhang is a measure of the potential dilution to which a common stock's existing shareholders are exposed due to the potential that stock-based compensation will be awarded to executives, directors or key employees of the company.It is usually represented in percentage form and is calculated as stock options granted, plus the remaining options that have yet to be granted divided by the total shares outstanding.Backdating involves manipulating the timing of options grants so they look as though they were made on days when the stock's value was lower.Doing that boosts recipients' windfall when they sell the stock.

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