Fasb backdating stock options Sexy live chat arab women

To date, the Commission has charged two issuers and fourteen individuals (affiliated with eight issuers) with improper stock option grant practices.Of the individuals charged, seven have settled, and seven are litigating.The intent of backdating option grants is to allow the option recipient potentially to realize larger eventual gains, but still characterize the options as having been granted "at-the-money" - disguising the fact that he or she received the options with an exercise price below that of the current market price of the company's stock.

One academic study we referenced showed that, whereas in 1992 share options accounted for only 24 percent of the average pay package for these CEOs, by 2002 options comprised approximately half of the typical CEO's total compensation.One of our central tenets is that it is up to boards of directors, as they are influenced by market forces, to determine how to fairly compensate company personnel, and that shareholders need full and transparent disclosure about executive pay in order to make informed decisions about who to elect as directors.Stock Option Abuses and Improper Practices As the use of options compensation has increased, however, we have seen some abuses as well.This practice involves misrepresenting the date an option is exercised to make it appear that the exercise occurred at an earlier date - when market prices were lower - than when the exercise actually occurred.The consequence in this instance is to understate to investors the benefit of the exercise for the exercising executive and to reduce the ultimate tax liability of the employee.

Leave a Reply