Representative Barney Frank has proposed an amendment to the Sarbanes-Oxley Act that would require corporate executives to repay gains from stock options if the value of company stock declines by a “material amount” within one year of options being exercised.

Although not going to the heart of the options/buyback schemes that have distorted equity markets over the last generation, this move indicates at least some legislative awareness that long-term shareholders are possibly being unfairly treated by hired corporate executives.

This entry was posted on Sunday, October 24th, 2004 at 5:48 pm and is filed under Corporate Managers. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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