Option backdating example finbar dating
This is the granted option that would be reported to the SEC.
The act of options backdating has become much more difficult as companies are now required to report the granting of options to the SEC within two business days.
The SEC and other federal authorities are currently investigating more than 50 companies suspected of illegal, undisclosed options backdating practices, and the first criminal charges relating to these practices are expected shortly.
The practice of backdating options is not illegal as long as it is disclosed to shareholders.
According to a study by Erik Lie, a finance professor at the University of Iowa, more than 2,000 companies used options backdating in some form to reward their senior executives between 19.