Tech's Backdating Blues

The options-backdating scandal hasn't exactly been good news for the beleaguered tech sector.

But things could get worse -- potentially, a lot worse.

In coming weeks and months, the number of companies accused of backdating options for their executives or allowing them to game the system in other, similar ways will likely continue to grow, analysts say. And because the tech industry has been one of the most prolific users of the compensation scheme, it wouldn't be surprising if the bulk of those are tech firms.

"I worry every day that one of the names I own will come out and say 'We have an issue,' " says a portfolio manager who asked to remain anonymous. "This is already a big cloud. A portfolio manager would have to be kidding you if he said he wasn't worried about this." ...