How to control for options dating miscues

It is often said that Sarbanes-Oxley has solved the options mis-dating scandals, given that the new rules basically ban improper backdating. But that would be a bit naive. The bottom line is that options controls are now something that the board must evaluate and perhaps even attest to. It would be hard not to call it a 404 issue, especially in the current climate. Of course, one could do this all manually. But many big companies will likely want to consider one of the emerging automated solutions. It boils down to a time-stamp issue in many cases, which may require a common and inexpensive time server. The thought is that a system will be able to note exactly when options were awarded and cross check that with the options' stated grant dates--all in a way that is audit-able. It may be worth looking into.

For more:
- here's an article from Wall Street Technology

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