What is backdating stock options


18-Aug-2018 15:41

After all, stock option backdating is all the rage these days.You'd think they'd be up to their eyeballs in rope.The basic idea was that many companies seemed to award stock options on days when their stocks were at low-points, which increased the value of the options when the stock increased and made the stock cheaper to buy for the executives.The academics concluded that something funny was going on.

That seemed like a contradiction to me, but whatever.I count no fewer than 38 top executives at 19 high-tech companies that have bit the dust over this stuff.We're talking top executives at big-name companies like Apple, Altera, Broadcom, Brocade, Cirrus Logic, Comverse, KLA-Tencor, Maxim, Mc Afee, Rambus, Sanmina-SCI, Take Two, Trident, Verisign, and Vitesse. That's serious fallout considering that options backdating is legit as long as the company reports it and accounts for it accurately.It was a tax advantaged way for companies to pay executives. Shareholders were correctly told the number of options granted and the price of the options.



Spotlight on Stock Options Backdating. Enforcement Actions Related to Options Backdating; Commission Speeches and Testimony Related to Options Backdating… continue reading »


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