Cablevision Gave Options To Deceased Executive

  • September 25, 2006
Cablevision Systems, it has been revealed, back-dated stock options for a dead man. According to its 10-Q quarterly report filed Sept. 21, Cablevision revealed that an investigation by an independent auditor discovered discrepancies in the dating of options grants for two former employees: a consultant whose contract was terminated in 2003, and an executive officer "whose death occurred after the stated grant date of the award and before the actual grant date." The Wall Street Journal says the deceased employee was late vice chairman Marc Lustgarten, a longtime Cablevision executive, who died in 1999. It could not be determined how much his estate may have benefited from the back-dating. SEC documents revealed that the estate had options for about 400,000 shares, at least until 2003.

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