Tags |
|
|
Links |
|
|
Hub You - Current Estimate of Economic Impact of Options Backdating
Rotary die cutting is a process used to cut paper, metal, rubber, plastic, vinyl and other material in a predetermined shape and size. This method is used to cut shapes and designs that cannot be accomplished by a straight cut on a web press or a guillotine cutter.The rotary method uses knife-edge cutting blades designe
Assuming remaining companies Remaining companies only go over steps 1 & 3 $1.75 B
The other part of the economic impact stems from losses in market capitalization. If you estimate cu
The ease with which one can incorporate a new venture has made it possible for people to reap the numerous benefits that incorporation offers them, such as ease of raising capital if necessary by issuing more stocks, limited liability protection for the owners, deductible fringe benefits, and business losses.Steps for I
First the assumptions:
1. # of companies that actually are investigated or asked by the SEC (currenty June 03 is 42) by June 2006 = 100
2. # of companies that will complete the 3 step process of preliminary investigation, comprehensive audit and finally restatement of results (approximately at 30-50%) = 40
3. Approximate amount of time spent performing the initial investigation = 4-6 weeks.
4. Approximate time spent doing comprehensive audit = 20-32 weeks
5. Costs in back taxes, delisting, restatement, defending lawsuits & fines = 30% of cumulative value of option grants
6. Size of company assumed on average: $500M in revenues, 2500 employees, 25+ grants under inquiry
7. Grant value net = $15M per incident
If you want to do your own analysis (how much will this cost my company), feel free to use some of these estimations.
# Expense Item Description Cost
1 Initial Investigation Typically done by Board & Audit team $1.5 M 2 Communication expenses Economic impact of communication loss to company $4M 3 Audit fees Formal investigation fees for auditors $30M 4 Restatement costs Includes delisting, cost of documentation, $9 M 5 Taxes and fines Back taxes owed to IRS, Fines by SEC $15 M 6 Legal fees Defending lawsuits on backdating $20M Subtotal For each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThe other part of the economic impact stems from losses in market capitalization. If you estimate curAssuming remaining companies Remaining companies only go over steps 1 & 3 $1.75 B
In my opinion or what I think I have learned about what causes cattle to have horns, scurs, or to be polled? This opinion has been formed through much research and many years of cattle breeding.The polled or hornless condition is dominant over the horned condition in cattle. The scurred condition is the result of incomp
First the assumptions:
1. # of companies that actually are investigated or asked by the SEC (currenty June 03 is 42) by June 2006 = 100
2. # of companies that will complete the 3 step process of preliminary investigation, comprehensive audit and finally restatement of results (approximately at 30-50%) = 40
3. Approximate amount of time spent performing the initial investigation = 4-6 weeks.
4. Approximate time spent doing comprehensive audit = 20-32 weeks
5. Costs in back taxes, delisting, restatement, defending lawsuits & fines = 30% of cumulative value of option grants
6. Size of company assumed on average: $500M in revenues, 2500 employees, 25+ grants under inquiry
7. Grant value net = $15M per incident
If you want to do your own analysis (how much will this cost my company), feel free to use some of these estimations.
# Expense Item Description Cost
1 Initial Investigation Typically done by Board & Audit team $1.5 M 2 Communication expenses Economic impact of communication loss to company $4M 3 Audit fees Formal investigation fees for auditors $30M 4 Restatement costs Includes delisting, cost of documentation, $9 M 5 Taxes and fines Back taxes owed to IRS, Fines by SEC $15 M 6 Legal fees Defending lawsuits on backdating $20M Subtotal For each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThe other part of the economic impact stems from losses in market capitalization. If you estimate cuAssuming remaining companies Remaining companies only go over steps 1 & 3 $1.75 B
If you think that the programmer has nightmares trying to get a piece of medical billing software to work correctly and the QA tech has headaches trying to test this software under every possible condition, imagine the troubles that the support tech has when he is basically stuck in the middle of this no win battle. In this i
4. Approximate time spent doing comprehensive audit = 20-32 weeks
5. Costs in back taxes, delisting, restatement, defending lawsuits & fines = 30% of cumulative value of option grants
6. Size of company assumed on average: $500M in revenues, 2500 employees, 25+ grants under inquiry
7. Grant value net = $15M per incident
If you want to do your own analysis (how much will this cost my company), feel free to use some of these estimations.
# Expense Item Description Cost
1 Initial Investigation Typically done by Board & Audit team $1.5 M 2 Communication expenses Economic impact of communication loss to company $4M 3 Audit fees Formal investigation fees for auditors $30M 4 Restatement costs Includes delisting, cost of documentation, $9 M 5 Taxes and fines Back taxes owed to IRS, Fines by SEC $15 M 6 Legal fees Defending lawsuits on backdating $20M Subtotal For each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThe other part of the economic impact stems from losses in market capitalization. If you estimate cuAssuming remaining companies Remaining companies only go over steps 1 & 3 $1.75 B
Many folks believe that all business people and CEOs are greedy Machiavellian types and should be arrested. It is amazing how few people take everything for granted without realizing that it was the businesses and entrepreneurs who have brought in everything you see, everywhere you go. It is Over Regulation in the US that is t
# Expense Item Description Cost
1 Initial Investigation Typically done by Board & Audit team $1.5 M 2 Communication expenses Economic impact of communication loss to company $4M 3 Audit fees Formal investigation fees for auditors $30M 4 Restatement costs Includes delisting, cost of documentation, $9 M 5 Taxes and fines Back taxes owed to IRS, Fines by SEC $15 M 6 Legal fees Defending lawsuits on backdating $20M Subtotal For each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThe other part of the economic impact stems from losses in market capitalization. If you estimate cuAssuming remaining companies Remaining companies only go over steps 1 & 3 $1.75 B
Managing Six Sigma right from data collection through to final success is a long walk of sifting through loads of raw statistical data collected from various aspects. Six Sigma software tools are basically statistical interpretation tools while a small number of them are also available for data collection itself.On top
Assuming remaining companies Remaining companies only go over steps 1 & 3 $1.75 B
The other part of the economic impact stems from losses in market capitalization. If you estimate currently (42 companies) lost over $63 Billion in Market capitalization (United Healthcare itself accounted for over 30% of this number) over the last 9 months. Assume that will be 50% less (since the bad news is out) for the remaining 50+ companies. The impact is another $31B. We also did a detailed analysis on this portion of the impact. Total Impact of Stock Option Backdating ~ $100 Billion.
For each company approximately = $50 to $100 Million in expenses.
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.iadvice.info/article/3064/iadvice-Current-Estimate-of-Economic-Impact-of-Options-Backdating.html">Current Estimate of Economic Impact of Options Backdating</a>
BB link (for phorums):
[url=http://www.iadvice.info/article/3064/iadvice-Current-Estimate-of-Economic-Impact-of-Options-Backdating.html]Current Estimate of Economic Impact of Options Backdating[/url]
Related Articles:
How To Negotiate Like A Pro With Your Boss
Top Tips to Boost Your Professional Reputation
Bookmark it:
|