Activist investors, including Hermes of the UK, have teamed up to tackle the growing problem of options backdating among US groups, in a move designed to stave off regulatory and shareholder action.
The alliance is part of efforts to encourage more UK-style dialogue between US management and shareholders and avoid the aggressive confrontations and legal actions that characterise American corporate governance battles.
The move comes as 150 US companies have been embroiled in a scandal over the backdating of executives' stock options, which could trigger a regulatory crackdown and lawsuits from shareholders.
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