Here is an article that I wrote a few years ago on the J.P. Morgan Equity Grants of 2008 and 2009.

http://optionsforemployees.com/articles/article.php?id=146

I have since discovered that the J.P. Morgan and its cut-out Morgan Stanley influenced the stock lower to accommodate the grantees. Morgan Stanley made sell recommendations and sold stock through computerized trading for holders of J.P. Morgan stock on the very days of the SARs and RSU grants for the years 2008 and 2009 but never did the same for any other day over a three year period 2007-2009. 

Is there any wonder why the top executives at J.P. Morgan received exercise prices at the lowest price of the stock for 5 years on Jan 20, 2009.

John Olagues

Just curious, but how many people do you think are likely to be complicit in that kind of award timing? 

I don't think it would take more than 10 people.

Here is a link to a recent email to a Securities lawyer from me. Showing that the stock was probably knocked down in  Jan 2012 as well. The arrow shows the date of the grant.

https://mail.google.com/mail/u/0/?hl=en&shva=1#search/jvasquez%40vasquezlawoffice.com/1379fc78571d7c5d

So they are still at it.

John Olagues

I couldn't view the email for some reason. 

Why do you think this spring loading is not getting any attention?  It seems you have done a great job in demonstrating a trend here.  And as you said, this doesn't appear to be incredibly good luck for two or more years.  So if it's that obvious and not getting any attention, what sort of conclusion can we come to?

Seems like there may some interesting evidence here.

Erik Lie is the guy who "broke" the backdating issue a few year ago.  Perhaps he is someone who can confirm this and provide some insight. 

http://en.wikipedia.org/wiki/Erik_Lie

http://bigcharts.marketwatch.com/historical/default.asp?symb=jpm&closeDate=1%2F18%2F12&x=33&y=30

Above is the link to the graph showing the movement of JPM stock around the grants to top executives on Jan 18, 1012.

Yes Eric Lie and others have focused on backdating and spring loading. But generally the emphasis was upon managing news and results prior to and after the grants. I acted an expert witness for a lawyer and found some computerized selling of a guys JPM stock, that he had held for over 20 years without a sale, on the day of the grants to Jamie one year Jan 22, 2008 and the following year on the day Jamie purchased 500,000 shares, Jan 16, 2009.

John, 

Very interesting data. I can't argue that it looks like this might not be purely a coincidence. Perhaps more research can be done to look for similar movements/trades/grants for other companies. 

On another note: It's ironic that this is an article from yesterday -

Big-bank CEOs see stock options recover

http://www.theglobeandmail.com/report-on-business/careers/management/executive-compensation/big-bank-ceos-see-stock-options-recover/article4249384/?cmpid=rss1

I think I have seen research like what John did before, but with companies other than JPMorgan.  I can't believe this is coincidental timing and find it startling that this kind of activity is still going on after all the scrutiny and backdating scandals. 

It seems at the very least high risk on behalf of a few individuals, but worse an egregious land grab at the expense of the tax payer (TARP) and the shareholder.  I don't know what to think anymore.

Here is the former CEO of Yahoo!, Carol Bartz receiving timely grants of ESOs as shown on her SEC Form 4s below

http://www.secform4.com/insider-trading/1197640.htm

Below are the links to Bigcharts, showing how the stock performed immediately after the grants

5,000,000 ESOs 1/30/2009

http://bigcharts.marketwatch.com/historical/default.asp?symb=yhoo&closeDate=1%2F30%2F09&x=42&y=34

462,000 ESOs  2/25/2010

http://bigcharts.marketwatch.com/historical/default.asp?symb=yhoo&closeDate=2%2F25%2F10&x=50&y=28

500,000 ESOs  2/25/2011

http://bigcharts.marketwatch.com/historical/default.asp?symb=yhoo&closeDate=2%2F25%2F11&x=58&y=30

She must have watched the ESO granting history of Yahoo to former CEO Terry Semel, although her's was much smaller than Semel's.

John Olagues