What is the stock option crisis all about?

I was interviewed last week for this story in the SJ Mercury News on the stock option backdating crisis. An interesting question is whether or not investor lawsuits or SEC prosecution will solve the problems of managing public corporations. Investors, particularly large institutional investors, need to cosnider a more active role in managing the companies in which they invest such as taking a seat on boards of directors. Unfortunately, the SEC blocked reforms last year that would have made that easier!