The flip side of the stock options scandal

Some of you would argue that Sarbanes-Oxley adequately addresses the issue of stock options backdating. By forcing disclosure within two days of grant, it makes it harder to play games with grant dates. But Sarbox does not apply to donations of stock. According to other rules, executives who give stock (to charity, for example) do not have to disclose the fact until 45 days after the fiscal year ends. The Wall Street Journal notes that his allows for some games when it comes to donations. Indeed, an NYU professor has found that some donations of stock just happen to occur right before the stock tanks. That maximizes the value of the donation and tax savings. Given all the options scandals, I'm not at all surprised by this.  

For more:
- here's the Wall Street Journal item

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