Securities and Exchange Commissioner Roel Campos recently sketched out his views on the principles of good compensation policies corporate directors should follow, even as he warned that directors could also face liability for sloppy stock option programs tarnished by backdating.
In an Aug. 15 speech to the Hispanic Association on Corporate Responsibility, Campos said that while the SEC so far has charged executives at only two companies for backdated option grants, others are likely to be ensnared as well. What’s more, he said, “If the facts permit … it wouldn’t surprise me to see charges brought against outside directors.”
