Source Pravda.Ru

Analog Devices fined for stock-options backdating

Analog Devices (NYSE: ADI), an American multinational producer of semiconductor devices, will have to pay a $4 million fine for illegal stock-options backdating.

The company decided to settle the case without admitting or denying the claims and agreed to cease and desist from such practices in the future.

Securities and Exchange Commission raised claims of backdating options (the practice was registered in 1998, 1999 and 2001) asking the company for compensation of $3 million and exclusively its CEO, Jerald Fishman, for a $1 million fine.

In addition, Mr. Fishman will return $450,000 of gains from exercising a 1998 backdated option grant, along with $42,110 in interest, and Analog will reprice two option grants that Mr. Fishman hadn't yet exercised in order to eliminate any benefit from the backdating.

SEC regulators blamed Analog for picking days prior to the grant date when the stock price was lower, potentially increasing the option's value. Thus the company failed to properly expense the cost of nearly $31 million of compensation costs and misled investors.

SEC didn’t fine Analog for granting executive and employee stock options in advance of announcing positive financial results.

Options are financial instruments that convey the right, but not the obligation, to engage in a future transaction on some underlying security, or in a futures contract. In other words, the holder does not have to exercise this right, unlike a forward or future. For example, buying a call option provides the right to buy a specified quantity of a security at a set strike price at some time on or before expiration, while buying a put option provides the right to sell. Upon the option holder's choice to exercise the option, the party who sold, or wrote, the option must fulfill the terms of the contract.

When the bill was submitted to Congress on August 2, the reason for imposing the new sanctions on Russia was based on Russia's alleged interference in the US presidential election in 2016, but then something clicked

US sanctions to kill Russian banks and sovereign debt?

The Central Bank of Turkey announced measures to protect the financial market of Turkey against the background of the collapse of the Turkish lira and conflict of interests with the United States of America

Turkey desperately tries to rescue its national currency as it falls to all-time lows
Comments
US sanctions to kill Russian banks and sovereign debt?
Russia to build major naval base on the coast of Caspian Sea
US sanctions to kill Russian banks and sovereign debt?
Turkey desperately tries to rescue its national currency as it falls to all-time lows
World War Three may break out because of USA's agony
World War Three may break out because of USA's agony
Ukraine dreams of what it can do to Crimea after winning war with Russia
Turkey and USA take their relationship to breaking point
Russia starts Star Wars first. USA concerned and puzzled
Russia to build major naval base on the coast of Caspian Sea
US sanctions to kill Russian banks and sovereign debt?
US sanctions to kill Russian banks and sovereign debt?
The end of the theory of a Nobel Prize in chemistry?
US sanctions to kill Russian banks and sovereign debt?
Russia starts Star Wars first. USA concerned and puzzled
Russia starts Star Wars first. USA concerned and puzzled
US sanctions to kill Russian banks and sovereign debt?
Turkey and USA take their relationship to breaking point
Iran shows new ICBM that can evade radars
USA and Turkey: The elephant kicks the barking pug aside
Venezuela: Once again, interference from the USA in Latin America