Activision Under SEC Investigation
June 7th, 2007 Posted in Business
The Securities and Exchange Commission is now formally investigating Activision and its stock-option granting practices. When stock-options are granted to employees, they get the right to buy stocks at a fixed price, but the problem is that some executives from Activison (and THQ, Take-Two, and EA, are all under suspicion as well) backdate their options so the current value is maximized.
Activision has an internal investigation regarding the matter, but they cleared all executives of wrongdoing. The SEC apparently thinks otherwise.
June 7th, 2007 at 6:50 pm
Option backdating investigation is actually plaguing the US corporation as a whole, hell even Steve Job got one last year so Im not really surprise about big companies such as EA or Take-Two to get one too.