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“In some ways this can be viewed as the greed of executives.” In some instances, shareholders are suing the companies, their top officials and directors, alleging manipulation to enrich executives at the expense of the bottom line.

said it had launched an internal investigation, and Quest Software Inc. The flock of company executives and directors being ousted, he added, “increases the likelihood that somebody’s going to be prosecuted.” At issue is whether company insiders manipulated the timing of stock option grants to bring big payoffs to executives by improperly backdating the grants to coincide with low points in stock prices.

The lower the exercise price, the greater the potential gain.

Among the companies being investigated are KLA-Tencor , Affiliated Computer Services , Take-Two Interactive Software , Progress Software and Corinthian Colleges , the Journal reported.

Earlier this year, Juniper restated its financial results, announcing the recording of 4.7 million in pretax, stock-based expense for the years 1999 through 2005.

-By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Siobhan.




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