This excerpt taken from the UNH 8-K filed Oct 16, 2006.
The Company made disclosures in various SEC filings that its option grants were made at the fair market value of the Companys stock on the dates of the grants and that no compensation expense was recognized. In light of our findings above, the disclosures with respect to stock option practices and related accounting were not accurate in certain respects. Accounting and disclosure implications that flow from the option granting practices of the Company are being considered by the Company and its auditors and will be addressed and/or corrected, as necessary, in the Companys financial statements and filings.
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An appropriate tone at the top, adequate controls and discipline over the option granting process, and management transparency with the Board and its committees on executive compensation matters are basic and critical to the integrity of option grants. As described above, there were various failings in these areas.
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