Making excuses for bad behavior

Posted by Achaessa / on 11/11/2010 / 1 Comment

Check this website out - http://www.backdatingisnotacrime.com/category/backdating-overview

Even if backdating were "legal" would you want the headaches and legal bills that go with trying to prove you're right?

 

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  • Dan says:

    I guess the big question is: Why the heck did someone feel the need to spend the time and money to build the site at all?

    Backdating is not illegal when done properly. it is simply expensive and a hassle, and something that most shareholders do not appreciate. The companies that were brought into court for backdating were generally not brought in because the set their exercise prices to below the FMV on the date of grant. They were singled out because they did it, then tried to make it appear as if they didn't. They didn't disclose their actions, nor did they account for the additional option expense that results from granting "in-the-money options. Lastly, some of them granted ISOs this way, which is a violation of IRS rules.

    There is also the issue of 409A violations for granting options that have an intrinsic value at grant. Many companies had a bigger issue with these than with anything in court.

    Again: why the heck did these people feel the need to create the website at all?????

    November 19, 2010 at 9:10 AM | Permalink

 

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