SEC making inquiry into Home Depot's stock options

<p>The U.S. Securities and Exchange Commission has begun an informal inquiry into The Home Depot Inc.'s disclosure that it had found $10 million in unrecorded stock option expense.</p><p>In reporting it on June 16, the Atlanta-based company said the amount is not material and it does not plan to restate the past year's financial results.</p><p>The review found that in five instances prior to December 2000, the date of a meeting or resolution approving a stock option grant was later than that used to determine the stock option exercise price.</p><p>In three of those five instances, the market price of the company's stock on the award date was higher than that on the date the exercise price was determined.</p><p>The nation's largest home improvement store chain said Friday it will fully cooperate with the SEC staff, and doesn't expect the inquiry will have a material adverse effect on the company.</p>

http://accesswdun.com/article/2006/6/121650