Aon Reports Incorrect Procedures for Stock Options Awards

August 16, 2007 ( - Aon Corp. has reported that a review of its stock option grant practices from 1994 to 2006 found incorrect procedures were used for several thousand awards.

Reuters reports that Aon said in a filing with the U.S. Securities and Exchange Commission (SEC) procedures for stock option grants caused incorrect measurement dates to be used for financial accounting and tax purposes. The company said it has taken steps to correct the errors.

In its review, the audit committee of Aon’s board found no misconduct by current or former management or directors, the filing said, according to Reuters. The company noted the review was not expected to have a material effect on its reported stock option expense.

Last year, public officials launched a sweeping investigation of stock option grant procedures at companies resulting in the prosecution and dismissal of a number of company executives (See Scorecard: 153 Firms Snared in Options Scandal ).