Start Unh stock options backdating

Unh stock options backdating

The notion that corporate executives would take personal advantage of a national disaster is outrageous.

Choosing a date back when the share price was lower makes the option more profitable if the company's share price rises.

The upheaval at United Health Group comes a few days after the company's board members saw the damning conclusions of an investigation by an outside law firm looking into backdating.

But Thrivent Financial analyst David Heupel says the report sheds light on why Mc Guire is stepping down, given his apparent knowledge of the options back-dating.

"It seems as though it was completely determinate by him; he had complete and total control over the when and the amounts of these awards, which is very counter to how a company should work," Heupel says.

And, Heupel says, United Health is certainly not alone in dealing with this stock options problem, so its reputation might not be charred.

Just in the past week, 10 companies' corporate leaders, including four CEOs, have left due to options backdating questions. C.-based attorney specializing in securities regulation. He's skeptical that the options scandals are being handled in the best way.

Mc Guire is one of the country's highest paid executives, having amassed nearly $1.8 billion in unexercised stock options, according to estimates cited in the Wall Street Journal.

And Mc Guire is a celebrated steward of the company.

"Is it really in the shareholders' interest to wipe out so many of the CEOs or CFOs?

Is there perhaps some middle ground that might be more appropriate to take with these senior officers and the backdating issue? Crimmins also says with the potential for thousands of additional options backdating cases coming to the attention of the Securities and Exchange Commission, he wonders how the agency will manage the workload.

That workload is not diminished by the leadership overhaul at United Health.