Companies involved in the growing stock options backdating scandal have lost $10.3 billion in total share price and additional compensation expenses, according to a recent analysis by market research firm Glass Lewis & Co.
The companies with disclosed option backdating problems have booked an additional $5.2 billion in pretax compensation expenses and their collective market value has dropped $5.1 billion since their disclosures.
That figure is based only on the 60 companies that have announced a specific charge they will take to rectify backdating. Another 24 companies have said they will have to restate their earnings, which implies they will also take a charge. And with at least 152 companies caught up in the options-backdating scandal, it is likely that still more may have to take charges.
Glass Lewis said a total of 153 companies had disclosed backdating problems since March, when a series of reports in the Wall Street Journal first brought the issue to light.
The analysis also revealed that 44 executives and directors at 24 companies have been fired or resigned over backdating.
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