Consequences of options backdating dating singles in manhattan
And public companies guilty of backdating may violate federal securities disclosure and reporting requirements, exposing themselves to regulatory or criminal investigations as well as securities fraud litigation.
If you decide to award backdated stock options, contact us about how to do it the right way.
In addition to this favorable accounting treatment, there was a tax benefit.
This discussion comment focuses on several fundamental issues that confront researchers examining the backdating scandal and other related decisions.
Specifically, we discuss the decision models for executives engaged in backdating and the potential role of social networks among directors, selection considerations, institutional voting behavior, and how backdated options can be replicated with existing equity instruments.
The purpose of the new executive compensation rules is to make the CEO's pay understandable to the shareholders who own the company.
Of course, no new SEC rules would be necessary to make executive pay transparent, if executives were all paid in the form of salary.