Broadcom Finds Backdating

An internal review by Broadcom(BRCM Quote) found evidence that some of its options grants were "backdated" to reflect a price that prevailed prior to the grants' formal approval.

The backdating occurred from 2000 to 2002, Broadcom said. To rectify the matter, Broadcom plans to take an additional options expense of more than $750 million and restate its previously filed financial statements.

Broadcom's finding is the latest development in an ongoing review of options grants that began this year when evidence surfaced of widespread "backdating" among U.S. companies. The practice piqued the interest of securities regulators who consider it an unsavory method of artificially maximizing compensation at shareholders' expense. ...