IBM announces Websphere Options Controversy Mitigator Express

With the executive options scandal popping
up across the business world like the dead guy in
"Weekend at Bernie’s"
and the tally of companies undergoing SEC
investigations for backdating resting somewhere north of 160, more
businesses are making changes to their stock option programs. The
latest: IBM,
which will end stock option grants for most directors in 2007
. The
company had been awarding directors options for 4,000 shares plus a
$100,000 retainer, at least 60 percent of which had to be used to
purchase IBM stock on the open market. No more. Effective Jan. 1, the
company will end those awards and instead pay directors $200,000 a year,
which they can take either in IBM shares or partly in cash. The move by
days follows the release of a study that suggests as many as 1,400
outside board members at 160 companies received questionable option
grants.

"We believe it’s sound governance to take this step," said John
Bukovinsky, an IBM spokesman. Unquestionable logic, given current
circumstances and the ignominious fates of folks like former Brocade CEO
Greg Reyes (see "
Worse comes to worst, Greg, maybe you can drive the Sharks’ Zamboni on
work release
").

 
 

Share this Post



 
 
 
 
 
css.php