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Here's how companies manipulate earnings.
"At the very least, options tended to promote a short-term focus," she said, "and at worst, they promoted fraudulent activity to manipulate earnings".
strong message that any executive who lies on company financial statements to manipulate earnings will be prosecuted to the fullest extent of the law".
The researchers looked at a long list of performance measures, and the only one that seemed even slightly related to executives' equity was the easiest for managers to manipulate: earnings per share.
LOUISE KRAMER ABOUT THOSE EARNINGS Federal securities regulators filed civil charges last week against three former executives of Nicor, a major natural-gas distributor, accusing them of a three-year scheme to manipulate earnings.
Years ago, they endorsed the spread of stock options in the belief that options aligned executive interests with their own; then they saw executives manipulate earnings reports to pump up their options.
Similar(38)
The appeal of overly aggressive accounting methods and manipulated earnings becomes obvious.
Freddie Mac's current chief executive and chairman, Richard F. Syron, joined the company in 2003 after the former managers revealed they had manipulated earnings by almost $5 billion.
Mr. Syron joined Freddie Mac as chief executive and chairman in 2003, after the company revealed it had manipulated earnings by almost $5 billion.
In investigations of accounting fraud suspected at Enron, WorldCom and other companies, securities regulators and prosecutors have focused on whether executives manipulated earnings to meet analysts' quarterly expectations and drive share prices higher.
Jeffrey Weitzen, the company's former chief executive officer, John J. Todd, its former chief financial officer and Robert D. Manza, its former controller, were accused of manipulating earnings in the second and third quarters of 2000.
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