American Tower Stock Options Questioned
November 9, 2006 at 5:58 AM (PT)
RCR WIRELESS NEWS reports that AMERICAN TOWER CORP. reported only partial results for the third quarter that showed rising revenues, but the company also disclosed troubling details of its investigation into its stock-option granting practices.
The company found that most stock options granted from 1998 to 2005 were incorrect, as they did not reflect the dates the grants were legally effective. AMERICAN TOWER acknowledged that certain members of management back-dated grants to use a lower exercise price, effectively increasing the value of their stock options. The back-dated grants were inconsistent with AMERICAN TOWER’s disclosures that the option grants were made at fair market value.
The company said it would have to restate some of its earnings due to the issue, but did not give details.