Option backdating example Filipino sex dating finder
But are options really as great for all parties as many have assumed?
Some executives have, well, at least when it comes to their stock options.
In order to lock in a profit on day one of an options grant, some executives simply backdate (set the date to an earlier time than the actual grant date) the exercise price of the options to a date when the stock was trading at a lower level. In this article, we'll explore what options backdating is and what it means for companies and their investors. Most businesses or executives avoid options backdating; executives who receive stock options as part of their compensation, are given an exercise price that is equivalent to the closing stock price on the date the options grant is issued.
The backdating concern occurs when the company does not disclose the facts behind the dating of the option.
(To learn more, read .) In short, it is this failure to disclose - rather than the backdating process itself - that is the crux of the options backdating scandal. To be clear, the majority of public companies handle their employee stock options programs in the traditional manner.
The process of granting an option that is dated prior to the date that the company granted that option.
In this way, the exercise price of the granted option can be set at a lower price than that of the company's stock at the granting date.
This is a way of repricing options to make them valuable or more valuable when the option "strike price" (the fixed price at which the owner of the option can purchase stock) is fixed to the stock price at the date the option was granted.
Cases of backdating employee stock options have drawn public and media attention.
This means they must wait for the stock to appreciate before making any money.Tags: Adult Dating, affair dating, sex dating