Online totally free cams - What is backdating stock options

by  |  25-Nov-2019 03:14

They’re valuable only if the stock price rises after you get them.

The companies involved in the recent scandal were backdating options to a time when the stock price was lower, making them immediately lucrative. stock options by claiming that they’re an incentive for performance: the executives get rich only if they do a good job and the stock goes up.

Said another way, do the feds really need to dig that deep to find enough rope to hang executives with?

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When news broke, earlier this year, that some companies had backdated stock-option grants ...

in order to make them more valuable, it seemed like a problem that would come and go quickly... What’s distinctive about this one is that the benefits companies got from backdating were so small.

Because the option value is higher if the exercise price is lower, executives prefer to be granted options when the stock price is at its lowest.

Backdating allows executives to choose a past date when the market price was particularly low, thereby inflating the value of the options.

The allegations of illicit sex, drugs, and rock and roll reminded me of the 60s ... Sure, Broadcom had to take a $2.2 billion charge to fix the accounting mess left by the company's former executives.

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