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    The New York Times Dealbook’s William Alden picks up on Horowitz’s hero story and gives us more details. She later pleaded guilty to tax evasion after a Justice Department inquiry into the stock options scheme. Abrams, the chief financial officer of Opsware at that time, was forced to resign in 2006 after it emerged that the S. No one talks about stock options backdating much anymore.

    The pattern was somewhat more common in technology companies, smaller companies, companies granting options to more executives and directors, and companies with higher stock price volatility.

    Volatility is especially significant: 29% of companies with high volatility appear to have manipulated grant dates, compared to 13% of those with low volatility.

    She reported that her previous company’s practice of setting the stock option price at the low during the month it was granted yielded a far more favorable result for employees than ours. Abrams and three other former officers committed fraud by backdating stock option grants and failing to record hundreds of millions of dollars of compensation expenses.

    She also said that since it had been designed by the company’s outside legal counsel and approved by their auditors, it was fully compliant with the law. As part of a settlement with the agency in 2009, Ms.

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