Since at-the-money options require a firm's share price to appreciate in order for the executives to profit, they meet the criteria for performance based-compensation and therefore qualify as a tax deduction.
When senior executives realized that they could look backward for the date during which their firm's stock was at its lowest trading price and then pretend that was the date they were issued the stock grants, a scandal was born.
Backdating is the issuing of stock options to an employee for a date other than an employee’s first day of employment, in an effort to potentially boost their value.
NYCERS will seek preliminary approval of the settlement with Apple in federal court in San Jose, Calif.
From a shareholder's perspective, nobody likes to be lied to when providing the financing and paying the salaries.
(See also: .) In the early 2000s, new accounting provisions were enacted that required companies to report their option grants within two days of their issue and also required that all stock options be listed as expenses.
With over 4 hours of video content and interactive exercises, you'll learn the fundamentals of options trading and how to employ effective strategies within the options market.From a consumer's perspective, customers rely on companies to provide goods and services.When those firms have no ethical boundaries, their wares become suspect.The first was in 1995, when a professor at New York University reviewed option-grant data that the SEC forced companies to publish.The study, published in 1997, identified a strange pattern of extremely profitable option grants, seemingly perfectly timed to coincide with dates on which the shares were trading at a low.