Back dating of stock how carbon dating
Thus, options back-dating to take advantage of a lower stock price can be argued to comprise current income to the employee and a current compensation expense to the company.
From the company's perspective, a finding that options were back-dated may require a restatement of prior years' compensation expense and income tax deductions, as well as an adjustment to retained earnings.
He decided to tack additional time onto what the defense had hoped would be an 18- to 24-month prison term.
Alexander has already had to pay a m penalty, thanks to a 2010 settlement with the US Securities and Exchange Commission.
Employees sometimes seek extended vesting privileges upon termination or a lengthy leave of absence.A fairly common practice in the 2000s tech world, backdating allowed companies to reward executives with more lucrative stock options by claiming the options were issued at an earlier time, thus allowing the exec to buy at a lower price when the options vested.While the backdating can be legal if properly disclosed and documented, many companies illegally worked the tactic and ran afoul of the law.The Securities and Exchange Commission reportedly has established a centralized enforcement team in Washington D. to coordinate a wide-ranging investigation of options practices, and many of the companies publicly identified as having options back-dating exposure have acknowledged receiving subpoenas from the SEC.At the same time, the United States Attorney in Manhattan has been quick to serve criminal subpoenas on many of the same targeted companies, and some reports indicate the Internal Revenue Service is also serving subpoenas on the companies and their executives. The investigations seem to be focused on various forms of alleged back-dating.