• February 2019
    M T W T F S S
    « Jan    

Backdating of stock options

The date prior to the grant date, which the board of directors approves to reflect a fair market value per share that was lower than it was on the approval date — the result being a lower exercise price. This practice is not encouraged since it subjects a company to potential charges of civil and criminal misrepresentation and securities fraud. Adverse tax consequences under Section 409A and disqualification of stock options are other potential ramifications.

Legal is hard. Let’s tackle it together.

Speak to one of our Legal Pros and discover how we can help.

Let's Talk