Free online couple chat with video - Repricing and backdating

Article Dec 2007 Research on Professional Responsibility and Ethics in Accounting. Article Ethics of options repricing and backdating. John's Law Scholarship Repository A copy of Mc Guire’s settlement agreement with the company and the derivative plaintiffs can be found here. Stock Options The Backdating Issue - Digital [email protected] A copy of the settlement agreement between Lubben and the company and the derivative plaintiffs’ counsel can be found here. The backdating of stock options has imposed costs on shareholders, employees.

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The magnitude of these settlements is obviously arresting.

Options backdating is the practice of altering the date a stock option was granted, to a usually earlier but sometimes later date at which the underlying stock price was lower. The scale of these settlements could have a significant impact on at least some of the other pending options backdating derivative cases, particularly where the company has been forced to restate and where top company officials have personally benefited from the backdating.

The practice of options backdating has landed many companies into the hotseat.

The SEC constantly investigates possible instances where high level.

While repricing is not new, it became a common event after the Internet bubble burst in 2000 and again after the financial crisis in 2008 as the stocks suffered a bear market.

As company stock prices dropped sharply, employee stock options became underwater, meaning their strike prices were above current share prices.

Under the Financial Accounting Standards Board (FASB) rules, when the company cancels an existing stock option and grants a new option "six months and a day" later it is technically not a reprice.

Therefore, it avoids variable accounting treatment. For that period of time between cancellation and new granting, the employee only has a promise that he or she will get the new options.

South Africa Proxy Voting Guidelines - Institutional. plan allows for option repricing or issue of options at a discount or backdating of options.

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