• July 2018
    M T W T F S S
    « Jun    

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.

User Review
0 (0 votes)

Legal is hard. Let’s tackle it together.

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

Let's Talk