Almost 1,400 corporate board members appear to have profited from the manipulation of stock-option grant dates over a 10-year period, according to a study released earlier this month.
The analysis raises the possibility that hundreds of board members were aware that options were backdated to boost their value to themselves and company executives. That could be seen as a conflict with their role as advocates for all company shareholders.
"Rather than merely failing to notice or stop the manipulation of executives' grants, many outside directors have received manipulated option grants and thus directly benefited from the manipulation practices," according to the study by Harvard professor Lucian Bebchuk and two other scholars.
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