Backdating stock options definition

The problem with this practice, according to the SEC, was that stock option backdating, while difficult to prove, could be considered a criminal act.

Since the advent of stock option backdating, corporate policies have moved first toward a posture of encouraging backdating as a standard business practice, but then toward a posture of avoidance as public scandals emerged and investigations into fraudulent or dishonest business practices increased despite a commonly held belief that backdating was an acceptable and legal practice.

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Additionally, companies can use backdating to produce greater executive incomes without having to report higher expenses to their shareholders, which can lower company earnings and/or cause the company to fall short of earnings predictions and public expectations.Corporations, however, have defended the practice of stock option backdating with their legal right to issue options that are already in the money as they see fit, as well as the frequent occurrence in which a lengthy approval process is required.In 1972, a new revision (APB 25) in accounting rules resulted in the ability of any company to avoid having to report executive incomes as an expense to their shareholders if the income resulted from an issuance of “at the money” stock options.Lettris est un jeu de lettres gravitationnelles proche de Tetris.Chaque lettre qui apparaît descend ; il faut placer les lettres de telle manière que des mots se forment (gauche, droit, haut et bas) et que de la place soit libérée.To avoid having to pay higher taxes, many companies adopted a policy of issuing “at the money” stock options in lieu of additional income, with the idea that the executive or employee would benefit through the option by working to increase the value of the company without exceeding the one million dollar deductibility cap for executive income.When company executives discovered that they had the ability to backdate stock option grants, thus making them both tax deductible and “in the money” on the date of actual issuance, the common practice of stock option backdating for financial gain began on a widespread level.While options backdating has been used to enhance or increase the value of options contracts while reaping the tax benefits of having issued “at the money” contracts, the practice is also frequently necessary in order to accommodate situations in which lengthy issuance procedures or corporate policies require more than one day to complete an approval process, thus showing an earlier issue date than that on which the contracts are actually issued.The SEC’s opinions regarding backdating and fraud were primarily due to the various tax rules that apply when issuing “in the money” stock options vs.Many backdating supporters point to Apple CEO Steve Jobs as an example of backdating that was not considered to be a criminal action in a court of law, yet when the same behavior is exhibited by another CEO, questions of criminal activity and executive corruption still arise.dictionnaire et traducteur pour sites web Alexandria Une fenêtre (pop-into) d'information (contenu principal de Sensagent) est invoquée un double-clic sur n'importe quel mot de votre page web.

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