Benefits November 6, 2006

Remote Workers Downplay IT Role in Monitoring Online Behavior

November 6, 2006 (PLANSPONSOR.com) - A new study from Cisco found that, in six out of 10 countries remote workers said their managers had the authority to control their online behavior more so than IT.
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According to a Cisco press release, in France more remote workers said their online behavior was no one’s business (38%) than those who said IT had the authority to control online behavior (33%). Thirteen percent of all remote workers surveyed said no one should control their use of company equipment.

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While remote workers surveyed in India, Italy, Japan and Germany said IT had the most authority to control their online behavior, those in Japan and Germany also gave significant authority to their managers.

IT professionals surveyed seem to realize remote worker’s perceptions of their role in controlling online behavior. More than half (53%) of IT professionals surveyed said their users did not think IT had the right to know how corporate devices were utilized, the release said. Only India and Brazil had a majority of IT respondents who did.

The study includes responses from more than 1,000 remote workers and 1,000 IT decision makers in 10 countries: the United States, United Kingdom, France, Germany, Italy, Japan, China, India, Australia and Brazil.

A previous study from Cisco found that, while 66% of remote workers said they are aware of security concerns when working remotely, many engage in behavior that jeopardizes online security (See Global Teleworkers Jeopardize Corporate Online Security ).

More about Cisco is at www.cisco.com .

Administration November 5, 2006

UnitedHealth Under Fire for Stock Options

May 11, 2006 (PLANSPONSOR.com) - Under fire for the timing of its stock options and the creation of a $1.6 billion option for its CEO, UnitedHealth Group Inc. said it may restate results that could reduce past earnings by as much as $286 million.
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Reuters reports that UnitedHealth also said the Securities and Exchange Commission (SEC) is conducting an informal inquiry into its stock options granting practices. The company said it has identified through its own investigation a “significant deficiency” in its controls relating to stock option plan administration, and accounting for and disclosure of stock option grants, according to Reuters.

In its quarterly filing with the SEC, the company said it may be required to record additional charges for stock-based compensation expense and the charges could be material and require restatement.   It estimated the restatement could decrease net earnings by $150 million in 2005, $84 million in 2004, and $52 million in 2003.

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UnitedHealth said it also may be required to pay additional taxes for compensation tied to certain stock options which were previously exercised, and that it may not be able to take additional deductions associated with certain options in the future. In addition, it could be subject to regulatory fines, penalties or other contingent liabilities, at the conclusion of the SEC inquiry.

Reviews by a committee of independent directors, aided by independent counsel and accounting advisers, as well as the company itself, with the assistance of outside counsel and accounting advisers, are continuing.

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