Last Ditch Options: An Assessment of Independent Director Liability and a Proposal for Congressional Action in Light of the Employee Stock Option Backdating Scandal

Authors

• Matthew S. Chambers, University of Georgia School of Law

Publication Date

2008

Abstract

The employee stock option backdating scandal that came to light in 2006 affected over 100 public companies in the United States. Greedy executives, auditing oversight, and even faulty accounting software systems have been blamed for allowing backdating to happen. This Note, however, examines how some corporate directors, in derogation of their fiduciary duties, may have assisted stock option backdating. The Note concludes with a proposal for congressional action that will curb further stock option manipulation.

Recommended Citation

Chambers, Matthew S. (2008) "Last Ditch Options: An Assessment of Independent Director Liability and a Proposal for Congressional Action in Light of the Employee Stock Option Backdating Scandal," Georgia Law Review: Vol. 42: No. 2, Article 6.
Available at: https://digitalcommons.law.uga.edu/glr/vol42/iss2/6