Many public corporations have come under scrutiny stemming from allegations of questionable accounting and disclosure practices surrounding the granting of stock options to senior executives. These investigations have focused on whether companies may have ‘backdated’ stock options to dates when they were selling at lower prices, thereby making the options potentially more lucrative and whether stock option grants were accurately disclosed in the company’s books and records and periodic reports. As companies continue to be inundated with regulatory inquires and civil litigation regarding this issue, they must be prepared to respond in a timely and effective manner.
It is imperative that the books, records, and periodic reports of public companies be accurate so that the investing public can trust not only the company itself, but the integrity of the capital markets as a whole. Additionally, public companies should want to take all steps necessary to ensure that their hard-earned reputations are not tarnished in any way. Daylight Forensic & Advisory can help today.
Daylight is well positioned to assist clients and their outside counsel by providing critical assistance with analyzing the potential risks associated with the granting and disclosing of stock options. Regulatory enforcement actions, criminal prosecutions, civil lawsuits, adverse tax implications and insurance liability for directors and officers are just a few of the risks related to the failure to accurately account for and disclose stock option grants.
Clients who are concerned about potential past or future transgressions in this area can rely on Daylight’s qualified professionals to conduct internal investigations of suspected accounting errors or irregularities and untrue or misleading public disclosures concerning the issuance of stock options to employees and executives.
Daylight can assist with the internal or independent audit process to help successfully navigate this high-risk area. Daylight’s team includes highly capable individuals with diverse and relevant experience, including former SEC, NYSE and NASD personnel, federal and state prosecutors, forensic accountants, certified public accountants, former federal and local law enforcement personnel, former compliance officers and forensic technology professionals. With this array of talent, Daylight can conduct efficient, extensive investigations, and review SEC filings and supporting documentation, including work papers, board and audit committee minutes and records of stock option grants. We can also review, assess, develop, and implement enhancements to a company’s internal control standards and policies and procedures relating to stock option grants.
If your company is already involved in an investigation or litigation or is seeking to avert these matters, our team of experts can be of assistance.
