Back dating of stock option validating checkbox asp net

In theory, it’s fine to offer an employee a backdated stock option — such as one for when a firm’s stock is currently at — as long as it’s accounted for correctly.Ninth Circuit Judge Carlos Bea noted in his opinion on the appeals case yesterday that for “in the money” options, in which an option’s strike price is typically lower than a firm’s share price, accounting principles require the company to record an expense for the profit to the options recipient, since the company could have sold its stock at the market price rather than grant an option.

The practice of backdating stock options as a way of retaining valued employees is legal, as long as the true expense of the backdated options is recorded as a company expense for employee compensation.Take this example, from The Wall Street Journal, which began investigating the practice last fall: "Suppose an executive gets 100,000 options on a day when the stock is at .Exercising them after it has reached would bring a profit of times 100,000, or million.Jasper signed all of Maxim’s filings with the SEC at that time.Liability was found in the Maxim case partly because backdating and a failure to expense the practice were proven, Fickes notes."Today's High" The highest sales price the stock has achieved during the regular trading hours, the intra-day high.


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