Backdating of Stock Options (Business Economics in a Rapidly-Changing World) - Softcover

Softcover

ISBN 10: 160741984X ISBN 13: 9781607419846

Publisher: Nova Science Publishers Inc, 2010

Synopsis

This book highlights the issue of backdating of stock options and its ramifications. Employee stock options are contracts giving employees the right to buy the company's common stock at a specified exercise price, at a specified time or during a specified period, and after a specified vesting period. The value of the option when granted lies in the prospect that the market price of the company's stock will increase by the time the option is exercised (used to purchase stock). At the grant date for the options, rather than selecting an exercise price based on the lower market price; that is, they backdated stock options to an earlier grant date. If this backdating occurred without public disclosure, the recipient of the stock options received increased compensation in violation of Securities and Exchange Commission (SEC) regulations, generally accepted accounting rules, and tax laws. Some backdating is said to involve "sloppiness", not fraud. The backdating of stock options has imposed costs on shareholders, employees, bondholders and taxpayers. This book consists of public documents which have been located, gathered, combined, reformatted, and enhanced with a subject index, selectively edited and bound to provide easy access.

Edition details

• Publisher: Nova Science Publishers Inc
• Publication date: 2010
• Language: English
• ISBN 10: 160741984X
• ISBN 13: 9781607419846
• Binding: Paperback
• Number of pages: 96
• Editor: Weinstein Bernard T