Unh stock options backdating
Former United Health Group CEO William Mc Guire in an undated photo courtesy of the company.Mc Guire will forfeit more than 0 million worth of stock options and retirement benefits under a settlement following a probe into the health insurer's options practices, the company said on Thursday. health insurer by market value, also settled with its former general counsel David Lubben and former director William Spears. Under the SEC settlement, he will be barred from serving as an officer or director of a public company for 10 years.
“There will be those who will argue that it’s somehow not enough...
REUTERS/Handout/File Former CEO William Mc Guire settled claims with both the U. Securities and Exchange Commission and the company, which had a special committee investigate shareholder claims arising from options pay to top company executives. “The last 18 months have been an extraordinarily challenging period for my family and me,” Mc Guire said in a statement.
“I am very pleased to have reached a resolution that puts these matters to rest.” Chad Johnson, counsel to many of the public pension funds that were plaintiffs in the case, said, “The message is clear: those imperial corporate executives who dare to use their positions of trust to take money from the company and its shareholders will be held personally accountable.” The SEC said the settlement is the first to use the “clawback” provision of the Sarbanes-Oxley corporate reform law to deprive a corporate executive of stock sale profits and bonuses earned while a company was misleading investors.
In return, he received less risky restricted shares that would vest within three years, and were valued at million.
Let the punishment fit the crime I do agree that the extent to which an executive goes to conceal backdating -- like creating fictitious board meetings, as an Apple employee allegedly did in Jobs' case -- should play a role in deciding the size of the penalty imposed.
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And surely few people had problems with the vilification of Kobi Alexander, the CEO of Comverse Technology , when he became a fugitive after his backdating scandal broke. While Saint Steve may not have really understood all the accounting mumbo jumbo that goes into play, it's hard to argue that he didn't benefit.