Taxes and the backdating of stock option exercise dates
Introduction Stock option backdating is a popular issue in today’s business environment.
With recent changes made to the accounting and reporting rules for stock options, a storied array of companies have announced illegal practices, investigations, executive resignations, and much more.
His discussion included, among other items, legal ways to backdate stock options.
Logically, we began to wonder why so many companies were illegally backdating options when the risk is so high.
Ultimately, the potential gain executives’ reap is far outweighed by the likelihood of detection.