Aug 2018 articles backdating stock options

Posted by / 03-Mar-2016 13:58

Aug 2018 articles backdating stock options

Cablevision has twice aborted plans to spin off its Rainbow Media networks division; has been investigated by the Securities & Exchange Commission for an accounting scandal; and been mired in a debt crisis over bad investments in such things as movie theaters and a consumer-electronics chain.Merrill Lynch media analyst Jessica Reif Cohen declared in a harsh note to investors that the options game is “consistent with the unorthodox stewardship of the company by the Dolan family, whose actions can at times be considered at odds with the interests of public shareholders.”But her recommendation on Cablevision stock: “Buy.”Why?Because Cohen's job isn't to judge the company but to figure out if the stock will go up or down.She knows that investors will probably shrug off the latest scandal.Last year, controlling shareholder and Chairman Chuck Dolan and his son, CEO Jim Dolan, fought bitterly over failed satellite-TV venture Voom, valued at

Cablevision has twice aborted plans to spin off its Rainbow Media networks division; has been investigated by the Securities & Exchange Commission for an accounting scandal; and been mired in a debt crisis over bad investments in such things as movie theaters and a consumer-electronics chain.Merrill Lynch media analyst Jessica Reif Cohen declared in a harsh note to investors that the options game is “consistent with the unorthodox stewardship of the company by the Dolan family, whose actions can at times be considered at odds with the interests of public shareholders.”But her recommendation on Cablevision stock: “Buy.”Why?Because Cohen's job isn't to judge the company but to figure out if the stock will go up or down.She knows that investors will probably shrug off the latest scandal.Last year, controlling shareholder and Chairman Chuck Dolan and his son, CEO Jim Dolan, fought bitterly over failed satellite-TV venture Voom, valued at $1.4 billion.

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Cablevision has twice aborted plans to spin off its Rainbow Media networks division; has been investigated by the Securities & Exchange Commission for an accounting scandal; and been mired in a debt crisis over bad investments in such things as movie theaters and a consumer-electronics chain.

.4 billion.

However, it should be viewed through the prism of Cablevision's long history of missteps.The company couldn't produce an audited earnings statement for the most recent quarter and might have to restate earnings going back nearly a decade. Cablevision's stock price dipped at first but, within an hour, had jumped back up and was 3% over the previous day's closing. That top management can stagger from one corporate gaffe to the next with little risk of punishment from Wall Street—as long as the company performs.Many times, Cablevision stock has taken a bad hit, but investors have always rallied back as if the company will sin no more.If a company's stock has been on the rise, backdating the option artificially lowers the exercise price, giving executives an extra bonus by allowing them to buy shares at an even greater discount off the market price.Executives at two companies, Brocade Communications Systems Inc.

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Wall Street taught Cablevision Systems an important lesson last week.