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Why I did not go to jail (2014)

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Re: Why I did not go to jail (2014)

#3

Post by jancsika »

Toward the middle, referring to author's very trusted counsel:

> “Ben, I’ve gone over the law six times and there’s no way that this practice is strictly within the bounds of the law. I’m not sure how PwC justified it, but I recommend against it.”

Toward the end, about the CFO's sentence ostensibly for breaking the law referred to above at another company:

> Once the SEC decided that most technology company stock option procedures were not as desired, the jail sentences were handed out arbitrarily.

Emphasis mine. I don't think that word means what author thinks it means.

Re: Why I did not go to jail (2014)

#4

Post by haney »

dec0dedab0de wrote: post #2

the title is "Why I Did Not Go To Jail" Does anyone understand why having employee options set a lower price would be illegal? Or is there just more details that were left out because the specifics are not necessary for the story?

Not a lawyer, but I’d assume that the option price would impact both the tax treatment of the option and the reported financials of the company.

Re: Why I did not go to jail (2014)

#5

Post by akeck »

dec0dedab0de wrote: post #2

the title is "Why I Did Not Go To Jail" Does anyone understand why having employee options set a lower price would be illegal? Or is there just more details that were left out because the specifics are not necessary for the story?

I think it's referring to this event: https://www.investopedia.com/articles/optioninvestor/09/back...

Re: Why I did not go to jail (2014)

#7

Post by propter_hoc »

dec0dedab0de wrote: post #2

the title is "Why I Did Not Go To Jail" Does anyone understand why having employee options set a lower price would be illegal? Or is there just more details that were left out because the specifics are not necessary for the story?

Here's a good summary of the stock option backdating scandal.

https://www.theglobeandmail.com/report-on-business/options-b...

It was because the paperwork for the option grants were being written at the end of the month with a date based on the lowest price during the preceding month, a common practice at the time, but one that misrepresented when the options were actually granted, thereby enriching grantees at the expense of shareholders.

Re: Why I did not go to jail (2014)

#8

Post by wombatmobile »

luplex wrote: post #6

Near misses make for amazing stories. If you are thinking of telling a near miss story, do it!

This is only a near miss story if you adopt a certain moral, ethical, and egotistical framework which says that sailing close to the wind trumps common sense ethics if you can get away with it.

It's the sort "near miss" that Allan MacDonald would have avoided on first principles.

https://news.ycombinator.com/item?id=26380822

Re: Why I did not go to jail (2014)

#9

Post by lolc »

jancsika wrote: post #3

Toward the middle, referring to author's very trusted counsel: > “Ben, I’ve gone over the law six times and there’s no way that this practice is strictly within the bounds of the law. I’m not sure how PwC justified it, but I recommend against it.” Toward the end, about the CFO's sentence ostensibly for breaking the law referred to above at another company: > Once the SEC decided that most technology company stock opt…

> I don't think that word means what author thinks it means.

I read that to mean the court didn't look at individual cases with much consideration and just handed out jail sentences to everybody involved. What do you think the author meant to say?

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