By:  Cydney Posner

More on option backdating from the WSJ, which reports again on statements by Christopher Cox regarding his expectation that the proposed new executive comp rules will address the backdating problem. In particular, Cox was reported to have said that the SEC would issue guidance "saying when it is appropriate or not appropriate for a company to grant options while in possession of material nonpublic information when it comes to 'spring loading.'" According to the WSJ, he said that he expects the process to be completed before the end of the summer. The CFA Centre for Financial Market Integrity is reported to have suggested, presumably in a comment letter on the proposed new rules, that the SEC require "disclosure of dates on which compensation committees approve share-based awards, disclosure of grant dates for all share-based awards, if different from the approval dates, and that compensation committees disclose whether any effective grant dates were selected to take advantage of pending news."

In addition, the article reports that Senator Charles Grassley has indicated that he is looking into "whether the tax laws on the books are adequate to rein in and prosecute stock-option backdating….If the tax laws are inadequate, I want to beef them up."

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