Today's boards look very different

Comverse technology stock option backdating

Too often, in my experience, boardrooms are full of directors that still don't understand that they have a fiduciary duty to shareholders at large. To get there requires changing corporate laws and practices. The insurance company may or may not allow backdating depending on the state where the person lives. Almost everyone who has previously enjoyed an advantage and is suddenly forced onto a level playing field will feel cheated, treated unfairly, singled out for undeserved punishment. One can only wonder what that euphemism really means.

The price of groupthink is that, at some point, reality intrudes. The reasons are interrelated.

And it has happened in a stunningly short period of time. Deviating too far from consensus leaves one feeling potentially ostracized from the group, with the risk that one may be terminated. Backdating, in this case, may be useful as the parties, who have already begun acting on the agreement, finish the final details of the written contract.

They do not own substantial stock in their companies and face no risk if things go wrong. Two parties in a business contract who explicitly agree in writing that an effective date for the contract can be made at a date prior to the current one.

The reasons are interrelatedThe price of