September 2009

Suspiciously Short
Stock options are often seen as a way to align both executive and shareholder interests. Yet accepted accounting principles leave management with some leeway when reporting earnings, inviting the possibility of stock price manipulation. Anup Srivastava and his colleagues discovered a surprising link between executive compensation packages and firms that miss earnings targets.

Mary Lea McAnally

Anup Srivastava

Connie D Weaver