These particular options have the tax advantage that, for long-term investors, the paper gain onexercise is not recognized until the stock is sold and it is then taxed at long-term capital gain rates.
Lawyers for IBRC argued that the assignment was a sham, part of an asset-stripping exercise carried out at a massive undervalue and not worth the paper it was written on.
When O'Connor and his colleagues broke down the results based on how well people were sticking to the exercise recommendations, an analysis not published in the JAMA paper, more striking differences emerged.
The second inspection took place in 2007 and was a paperexercise where inspectors largely based their judgment that things had improved and were now "good" on information and figures provided by Haringey.