Backdating an sabine lisicki dating sam stosur

For example, at the money options received more favorable accounting treatment — they did not need to be expensed.They also generally received more favorable tax treatment. Thank you so much for spending time today on this important topic.I thought I'd talk a little about where we are from an Enforcement perspective.These rules, in combination with the prescient provisions of Sarbanes-Oxley requiring timely reporting of stock option grants, will go a very long way toward preventing the kinds of problems we are seeing today from occurring to the same degree in the future.Second, in September the Office of the Chief Accountant issued guidance for companies trying to cope with the financial reporting ramifications of their various historical options practices from a reporting perspective.Meanwhile other legal and regulatory developments occurred that created distinctions between in the money and at the money options.These developments also tended to favor at the money grants.

backdating an-71backdating an-74backdating an-63

A company could legitimately choose to make highly attractive in the money grants, so long it convinced its shareholders that such grants were necessary and desirable and also complied with all of the proper accounting and tax rules.In addition to the enforcement efforts, others at the Commission have taken two other major steps to address this issue.First, there are the recently adopted rules relating to executive compensation disclosure which specifically address options.At that time, in the eighties and nineties, stock options, often in the money, were granted to employees in the hope that a highly-motivated employee pool would put the company in a better position to resist in hostile takeover battles.Over time, shareholders objected to the fact that the options were granted in the money and eventually many companies developed stock option plans in which grants could only be made at the money — that is, at the closing price of the stock on the day of the grant.

Leave a Reply