Faced with the press statement that the leaders share options could be retroactive, UnitedHealth Group Board shall determine whether the accounting for the options was appropriate, and if not, the recalculation of the amount should be and that the management / compensation changes, if any, it should take. In terms of accounting, allows for discussion of various methods of accounting for stock options - internal value compared to the fair value method - and the differences in the degree of control related to the amounts recognized in the financial statements and the amounts are only disclosed in the footnotes. From a corporate governance perspective, discusses how the board should respond to this type of crisis in the company of other exceptional financial performance is largely due to its long regular CEO.
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by Fabrizio Ferri Source: Harvard Business School 19 pages. Publication Date: September 12, 2006. Prod. #: 107028-HCB-ENG
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