The cable operator revealed that in addition to backdating options from 1997 to 2002, it awarded options to vice chairman Marc Lustgarten after he’d died and to a consultant, according to the Wall Street Journal.
Cablevision Systems joined the ranks of 100 companies being investigated for backdating stock options to their officials, and can lay claim to two of the more unusual abuses, according to a page one story in the Wall Street Journal. In a filing to the SEC, the company said that in nearly all the cases in which it had backdated options, share prices were lower, and often considerably lower, than their actual price on the day of the backdating.
Cablevision also revealed it had received a grand jury subpoena from the U.S. Attorney for the Eastern District of New York. It is already under investigation at the SEC.
The story, written by Peter Grant, James Bandler and Charles Forelle, said it wasn’t clear in the SEC filing whether the estate of Marc Lustgarten, former vice chairman of the company, had exercised the backdated options awarded after his death from pancreatic cancer in 1999. The filing also did not reveal the identity of the compensation consultant who was improperly awarded backdated options. It did reveal that the consultant had participated in the backdating process.