Options Backdating Options Backdating Fifty-two companies currently under criminal investigation. Two indictments. Multiple guilty pleas. All stemming from the practice known as "options backdating. Moreover, the company avoids having to backdating stock the options as current compensation, thus increasing earnings in the near term.
Enter the terms you wish to search for. August 29, 2018 by Edmund L. Andrews Email Corporate CEOs appear to be maximizing their personal option income with well-timed disclosures that cause stock prices to plummet. But a recent paper , coauthored by Robert M.
Before the clamor about the lack of prosecutions from the financial crisis and the current crackdown on insider trading, the practice of backdating stock options came to light seven years ago and prompted a flurry of prosecutions. For those whose memories have faded, options backdating became known publicly in March 2006 when a Wall Street Journal article questioned whether executives selected an earlier date for the price at which options could be exercised, effectively giving them a lower price and making them more valuable.