Backdating stock options mylan labs
The odds of winning the Powerball lottery, meanwhile, are one in 146 million, the newspaper reported.
But it could lead to a false disclosure, which may, in turn, violate federal securities laws.
Some executives have, well, at least when it comes to their stock options.
In order to lock in a profit on day one of an options grant, some executives simply backdate (set the date to an earlier time than the actual grant date) the exercise price of the options to a date when the stock was trading at a lower level. In this article, we'll explore what options backdating is and what it means for companies and their investors. Most businesses or executives avoid options backdating; executives who receive stock options as part of their compensation, are given an exercise price that is equivalent to the closing stock price on the date the options grant is issued.
Company stock option plans are on file with the SEC, with a description of how the strike prices are calculated.
But if the company later provides options at another price without further disclosure, then the company is violating its own plan.
All six of his option grants between 19 were dated prior to a rise in stock price.