Allen's Options

Why did a beleaguered hi-tech company grant 50,000 stock options to George Allen on the eve of his 2000 election to the Senate -- and his departure from the company's board?

By Garance Franke-Ruta
Web Exclusive: 11.01.06

On October 20, 2000 -- just 18 days before former Virginia Governor George Allen was elected to the U.S. Senate -- Xybernaut, a Virginia-based technology company, on whose board Allen served, held an early annual shareholder meeting and awarded Allen a tidy bonus of 50,000 stock options. Allen was granted the stock as part of his re-election to the board at a time when polls showed him to be the favorite in the impending senate election against Democrat Chuck Robb, and when it was clear that he would have to resign his board seat if and when he became a senator. Senate rules forbid members from serving on corporate boards.