Former CEO sued in backdating case
From Times Wire Services
Regulators sued former Engineered Support Systems Inc. Chief Executive Michael Shanahan, alleging that he colluded in backdating stock options.
Shanahan, 67, reaped compensation of more than $8.9 million and thus was the top beneficiary of the fraudulent backdating of options at the St. Louis-based defense contractor from 1997 through 2002, the Securities and Exchange Commission said Thursday. The agency’s lawsuit also targets Shanahan’s son, Michael Shanahan Jr., 40, who sat on the company’s compensation committee.
“The commission will aggressively pursue individuals who are alleged to have engaged in fraudulent stock option granting practices to secretly enhance their own compensation,” said Linda Thomsen, the SEC’s enforcement chief.
