It is the eve of stock-option expensing. The Financial Accounting Standards Board’s now-infamous FAS 123R requires that most public companies begin accounting for the costs of stock-based compensation as of their first fiscal year that begins after June 15. For companies with a calendar year-end, that won’t be until the March 31, 2006, quarter. But […]
Stephen Taub
Posted inRegulatory Enforcement
Wal-Mart Subject Of Another Whistleblower Complaint
Wal-Mart Stores is the subject of a whistleblower complaint for the second time in three weeks. A complaint filed Friday with the U.S. Labor Department asserts that Rickey Armstrong, a quality auditor in Wal-Mart’s Dallas Optical Laboratory, was fired by the retailing giant on March 12 in violation of Section 806 of The Sarbanes-Oxley Act […]
Posted inFrom the Archive
Morgan Stanley Exit Contracts Insist On “Good Behavior”
When Morgan Stanley entered into a severance agreement with former executives Tarek Abdel-Meguid and Joseph Perella, it went out of its way to assure that the two individuals would not join the opposition chorus. The investment banking giant, which has been fending off a group of eight former executives and shareholders who have been calling […]
Posted inFrom the Archive
SEC A.D. (After Donaldson): What’s Next For Public Cos.
For the past few years, the Securities and Exchange Commission sort of resembled an accidental regulator. It was led by a chairman who wasn’t supposed to get the job, it experienced an exodus of senior staffers, and it chased an ambitious agenda that was mostly forced upon it by outside events. Donaldson But as the […]
Posted inFrom the Archive
Fired Wal-Mart Executive Files Whistleblower Complaint
The former Wal-Mart Stores executive who was fired after providing critical information that led to the resignation of vice chairman Thomas Coughlin has filed a complaint with the U.S. Labor Department under the Sarbanes-Oxley whistleblower provision. According to the complaint, in January, February and March, Jared Bowen reported to Wal-Mart’s senior management conduct that he […]
Posted inBoards & Shareholders
Withhold Vote Gets Rare Majority At Career Education
The Securities and Exchange Commission may be dragging its feet on its proxy access proposals, but that hasn’t stopped shareholder activists from taking matters into their own hands. This proxy season, they have proposed scores of non-binding resolutions calling for companies to require directors be approved by a majority of voting shareholders in order to […]
Posted inBoards & Shareholders
Impact Of Unusual Blockbuster “Split Vote” Uncertain
One day before its May 11 annual meeting, $6 billion video rental chain Blockbuster issued unusual advice to its shareholders: It instructed them how to vote for some of the dissident director nominees vying for positions on the board. More specifically, the embattled video rental company detailed how shareholders could “split” their proxies and vote […]
Posted inFrom the Archive
Global Blackout: Fannie Mae Freezes Employee Stock Sales
Fannie Mae, the $53.8 billion home mortgage giant, recently told all of its 5,000 employees they cannot trade its stock until the embattled mortgage giant finally files its delayed and restated results. “The company felt it was prudent to avoid the appearance of inappropriate activity,” confirms Janis Smith, a spokeswoman for the mortgage giant. She […]
Posted inRegulatory Enforcement
Tyson Case Reminds Companies To Disclose Perks
When the Securities and Exchange Commission recently settled charges against Tyson Foods and its former chairman and CEO Donald Tyson—stemming from $3 million in perquisites and personal benefits paid out to Tyson and other family members—it marked the second case related to how companies dole out perks, and how they disclose them to investors. The […]
Posted inFrom the Archive
Outback CFO Merritt Explains Why He Abruptly Resigned
Back in April, Outback Chief Financial Officer Robert Merritt surprised his fellow executives, company employees, Wall Street, and other finance executives when he announced at the end of a routine earnings conference call with analysts that he would retire on May 27, citing what he called “recent lunacy over lease accounting.” Calling the situation a […]
