The ex-CEO of Comverse Technology arranged a secret slush fund of stock options by directing grants to "phantom" employees in a special account set up for the purpose, according to federal prosecutors.
They say the company's ex-CEO and ex-finance chief used a secret slush fund of stock options to lure new executives and reward favored employees without the knowledge of the board of directors.
Amidst rumors of slush funds and kickbacks, the stock prices of entities like BAE Systems and Lockheed Martin have increased parallel to government spending.