There are several articles and pieces on the pressure backdating is going to put on board of directors at companies. I have commented on the issue several times. Besides this the SEC has pursued Wells notices against the board of Mercury Interactive.
The New York times piece on Mercury also asks several questions about the compensation and approval practices of boards and their involvement. Granted this article is less sensational than other the NYTimes write but there are several points to consider.
"Even if the S.E.C. decides against taking further action against the directors, the fact that it has put the company’s compensation committee on notice is unusual. Corporate governance experts say that it appears to be the first time that members of an entire compensation or audit committee could face civil charges in the wake of a financial scandal."
See full Article.
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