Options backdating

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Options backdating

Awarding employees with stock options those are dated prior to the actual grant date. The date chosen could be one when the company’s stock was at a low, so the options can be in-the-money at the time of granting itself. The practice is illegal if it is not followed by proper disclosure and related expenses are not recorded in financial statements.
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References in periodicals archive ?
Spring-loading the pin tip ensures that electrical contact is not lost even during mild vibrations or if the base with captured board is moved about.
The intentional backdating or "spring-loading" of stock options by corporate directors, if proven, would be a breach of the good-faith element of the duty of loyalty sufficient to rebut the business judgment rule, the Delaware Court of Chancery has held in two shareholder derivative lawsuits.
In spring-loading, a company grants options shortly before releasing good news that directors know will increase the stock's price.
Spring-loading offers an explanation for how the virus brings out of hiding short bits of protein, called peptides.
Spirex Corp., Youngstown, Ohio, has applied for a patent on its solution to this perennial source of variability, which involves spring-loading a poppet member that seats against the valve body.