Disney Values $323M Backdated Pixar Options

LOS ANGELES -- The Walt Disney Co. has offered to exchange $323 million in backdated Pixar stock options issued to the animation company's employees before it was bought by Disney last year with higher-priced options and cash, according to a securities filing, Reuters reported.

The filing, made late Monday, showed that backdating at Pixar was not confined to top executives, who were not included in the exchange offer, Reuters reported.

The exchange applies only to unexercised options that had original exercise prices that were less than fair market value on the day they were issued. Disney said it will withhold taxes from the cash payments issued to participating employees, Reuters reported.

Disney Chairman John Pepper revealed last month that Pixar had issued backdated options but said Disney would see no financial impact from it, Reuters reported.

-- NYSSCPA.org News Staff

Posted on 4/10/07