UH-OH!!!!! EA under investigation by Security Exchange Commission....

[Mizzou B-ball fan]

The last time we had an announcement like this was with Take-Two.......

SEC Probes EA
EA joins other publishers in government investigation of stock options.
by Wade Steel

September 21, 2006 - Electronic Arts, the world's largest videogame publisher, revealed today that it had received an informal request on September 14, 2006 from the Securities and Exchange Commission (SEC) for "certain documents and other information related to its stock option grant practices dating back to January 1, 1997."

The request to EA is part of a wide-ranging investigation by the SEC into the stock option executive compensation practices of more than 100 technology firms to determine if any manipulation of the price of the stock occurred. In addition to EA, publishers Activision, THQ, and Take-Two Interactive have also received similar requests from the SEC.

In July, EA claimed that it had conducted an internal review of 10 years of stock options data that revealed no evidence of impropriety. However, the company stated that it will cooperate with the SEC on all matters related to the current inquiry.

[AgustusM]

halfway to my dream of all EA employees being publicly flogged!

[Eaglesfan27]

I don't suppose there is any chance this will negate the NFL exclusivity deal?

[wade moore]

Originally Posted by AgustusM

halfway to my dream of all EA employees being publicly flogged!

I've always understood it that a majority of EA employees hate EA as much as we do. That they're underpaid, overworked, etc... I don't think the majority of employees are the ones we dislike so much as upper level management.

[Mizzou B-ball fan]

Originally Posted by wade moore

I've always understood it that a majority of EA employees hate EA as much as we do. That they're underpaid, overworked, etc... I don't think the majority of employees are the ones we dislike so much as upper level management.

That's what irritates me even more about this situation. If the company gets nailed and stock prices plummet, the only people it hurts are the everyday employee and their 401K. The CEO's and other executives already have enough money to retire on. They're just saving for a 4th home at this point.

[MikeVic]

Originally Posted by wade moore

I've always understood it that a majority of EA employees hate EA as much as we do. That they're underpaid, overworked, etc... I don't think the majority of employees are the ones we dislike so much as upper level management.

That's my opinion as well...

[molson]

Originally Posted by Mizzou B-ball fan

That's what irritates me even more about this situation. If the company gets nailed and stock prices plummet, the only people it hurts are the everyday employee and their 401K. The CEO's and other executives already have enough money to retire on. They're just saving for a 4th home at this point.

I have no idea what's going on in this particular case, but the trend is toward broader criminal liability for Officers and even forfiture of past bonuses received under certain circumstances. So we're going in the right direction.

[Mizzou B-ball fan]

Originally Posted by molson

I have no idea what's going on in this particular case, but the trend is toward broader criminal liability for Officers and even forfiture of past bonuses received under certain circumstances. So we're going in the right direction.

Yes, that's true. However, in the aftermath of any losses, those executives can still go out and get another exec job in another company. They may not make as much as they did before, but they'll still make a very large amount.

Meanwhile, the common worker who lost a ton of his 401K cannot recoup that loss nearly as easily as the executive can.

[JPhillips]

I'd be happy with an order requiring patches so that their products perform as advertised.