Legal issues with backdating stock options Sex text chat with american girls
Executive Summary Stock option backdating is a complex issue.While there are legal ways to backdate stock options, as we found, few companies can properly account for backdated options.Ultimately, the potential gain executives’ reap is far outweighed by the likelihood of detection.Nonetheless, stock option backdating is a prevalent practice.If you’re negotiating your compensation package, and someone suggests that you can get stock options granted at a price lower than it’s traded at today, don’t do it.
Once the share price goes up, you can exercise your options to buy the shares and sell them for the higher amount, thereby making a tidy profit. But three months ago, your company’s stock was trading at a mere a share.
It can’t hurt to involve your company’s outside counsel (because in-house counsel may be receiving the same options) or a lawyer with no conflicts of interest.