Some Execs Scored Big As Company Values Plunged
from the cheating-execs dept
The San Jose Mercury News looked at a bunch of technology companies that have lost almost all (if not all) of their value, and then cross-checked that with how much their executies cashed out with and discovered that many technology execs made millions of dollars while their companies collapsed. The more you look at it, the more these look like giant ponzi schemes, where your everday investor got scammed big time. Of course, this shouldn’t be a huge surprise to most people, but if you wanted to see some of the actual numbers, the Merc has them for you.
Comments on “Some Execs Scored Big As Company Values Plunged”
told ya so
Everybody said I was lying or crazy when I said execs make off with money and leave employees with worthless options. Stock options are just a way to super-exploit workers by paying them lower salaries and leave them with worthless options.
I think your lying and crazy. They were USING their options just as the “super-exploit” workers could / should have. These were public companies — not startups — so if employees had options they could have sold them.
Much as the merc wants to find a villain in all of this, it’s the way the world works — there’s no evidence of fraud here. The “victims” who bought the stocks in soon-to-be-worthless companies are what facilitated this. If the company really misstated the financials, the disgruntled investor could file a civil action. But in most cases, they were shitty companies and it was all in 10Q if you bothered to read it.
Re: Re: Huh?
The exec’s sold stock that they had acquired via options they had previously exercised.
They didn’t sell their options. Neither they nor the “exploited” employees could sell the options they held or exercise them before the option date. Of course they were worthless by then.
Re: Re: Huh?
Perhaps someone can shed some light on what happens to execs of companies that misstate earnings. What happens when the company insiders sell a bunch of shares, then later have to restate their financials? Of course there are shareholder lawsuits, and post-Enron the CEO must vouch for the results, whatever that means. But is there anything like a fixed rule that if a company makes a material misstatement of earnings, then all the stock transactions by insiders during that time are unwound?