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Short the CEO - Buy the Stock?
Options backdating has sparked investigations at more than 120 companies and cost a few CEOs their jobs. But sometimes uncertainty creates a buying opportunity. By Katie Benner, Fortune reporter |
2006 price change: -21.8%
Executive casualty: CEO William McGuire, who made $1.8 billion worth of options over 15 years as the stock rocketed 8,500 percent, left in October.
Investment Outlook: Cautious. Profits are strong, but the P/E is high relative to its peers, and the insurer faces probes from the SEC, the Minnesota AG, the IRS and the Senate.
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Amidst backdating options scandals, American Tower uses another legal tactic for hiding executive compensation - backdoor options filtered through a subsidiary, Fortune's Bethany McLean reports. ( more)
How companies handle the investigation into backdating can have a big impact on their business - and investors. ( more)
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