Lucent Technologies Company Profile

\nIntroduction luminous Technologies lucent Technology is North Americas tether maker of telecom equipment and software, including shimmy and transmission equipment and business communications systems. Lucent Technologies, started trading humankindally in 1996 with an initial public offering that was, at the time, the largest in domestic history (Hayes). In December 1999, Lucents spud reached a high of $77.78 and was the nations fourth most widely held stock (Romero and Atlas). further by July 2001, Lucents stock was trading at $6.43, the sec was analyse its news report practices, and several former, superior managers had been sanctioned by the SEC or were under lamentable indictment for wrong-doing while at Lucent (Romero and Atlas). The plunge in stock value (exhibit 1) was principally the result of a November 21, 2000, announcement in which Lucent tell it had to restate its financial statements as a result of an inner(a) investigation revealing method of account ing irregularities. Lucents restatement reduced revenues by $679 billion (McGough, Bloomberg).\n\nAs early as June 2000, media attention had begun to be tell towards Lucents aggressive accounting policies. A hem in highway diary condition in June, 2000 suggested that Lucent Technologies might be prosecute in creative accounting practices, noting that Lucents receivables were rising at 49% while revenues were rising at only 20% (Wall Street Journal).\n\nAccounting Policy reporting objectives Lucents chief executive director Richard McGinn had dark Lucent into a Wall Street star by increasing gross revenue at a double dactyl pace and was determined to discover Lucents growth. Many observers believed that Lucents sales projections were oblige on sales executives by the chief executive who was captive on maintaining a 20 percent growth straddle (Berman and Blumenstein). Don Peterson was appointed the executive vice president and chief financial officer; he reported to chi ef operating officer Richard McGinn and was accountable for the Corporate pay Organization. Peterson explained in a 1999 article that revenue targets were attained because stock options were used as motivational tools (William, Hart). Motivation to manage pay was based on executive compensation for performing advantageously on the stock market. virtuoso of Lucents revenue growth simulated military operation included offering darksome product discounts to induce customers to barter for products now instead of delaying these purchases. The in short term result of increase current head sales came at the expense of not realizing those sales in resultant years. Other tactics knowing to increase current period revenues and meet stated sales targets included the extension of bountiful credit terms to customers....If you want to get a adequate essay, order it on our website:

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