CA saga shows some of the problems with stock options

by Darren

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Stock options are often used as a license to steal by the very people who are supposed to ensure that shareholder resources aren’t being squandered. CA is showing just how options can be misused, and just how much it costs taxpayers in the long run.

CA also issued fiscal-year earnings guidance well below Wall Street’s expectations, and the company said a problem with the accounting of stock options could cost shareholders as much as $540 million.

More bad news for beleauguered shareholders of the software company. That’s a whopping 1/2 billion plus that earlier management ripped off in the form of options. Options abuse is likely rampant at many major corporations, and threatens to really hurt the return of shareholders if any dishonest accounting methods are used.

What do you think of stock options?

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