Stock option backdating wall street journal

With the continued increase in executive compensation and resultant increase in pay disparity between those executives and the average worker, this issue is once again coming to the forefront of the public policy debate.

Over the years, lawmakers have tweaked the tax code to limit disfavored forms of executive compensation, while regulators have increased the amount of disclosure companies must make. Barbara Lee (D-Calif.) has introduced the Income Equity Act of 2011 (H. 382), which would amend the Internal Revenue Code to prohibit deductions for excessive compensation for any full-time employee; compensation is defined as “excessive” if it exceeds either $500,000 or 25 times the compensation of the lowest-paid employee, whichever is larger.

We reach no single conclusion on what earnings quality is because “quality” is contingent on the decision context.

We also point out that the “quality” of earnings is a function of the firm’s fundamental performance.

If you haven't considered how intelligent automation will affect your career and your company, and even if you have, following are some points to consider that may help you navigate the issue.

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