Cornerstone Research worked with an executive compensation expert for the defendant in a matter brought by the DOJ against a company executive.
Cornerstone Research worked with an executive compensation expert for the defendant in a matter brought by the DOJ against a company executive. The executive was accused of receiving excessive compensation by committing fraud against the company’s shareholders. Cornerstone Research assessed the reasonableness of the compensation received by the executive and analyzed the amount and structure of compensation received, including valuing stock options using the Black-Scholes methodology. We compared the executive’s compensation to the amounts and structure of compensation received by comparable industry executives by collecting and analyzing compensation data available in public financial filings. To control for the performance component of compensation, we also evaluated the stock returns of the company at issue relative to the returns of other companies in the industry.