married dating australia - Backdating of options

In theory, it’s fine to offer an employee a backdated stock option — such as one for when a firm’s stock is currently at — as long as it’s accounted for correctly.

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Backdating of options dating interracial latin

The Wall Street Journal (see discussion of article below) pointed out a CEO option grant dated October 1998.

The number of shares subject to option was 250,000 and the exercise price was $30 (the trough in the stock price graph below.) Given a year-end price of $85, the intrinsic value of the options at the end of the year was ($85-$30) x 250,000 = $13,750,000.

For instance, if the board meeting is on January 3, 2012, and Company XYZ stock closes at $45 per share that day, then the exercise price of John's 2012 stock are backdated, then his exercise price is only $15 per share.

He pays the $15 per share exercise price and can turn around and sell those shares on the exchange for $50 each, netting a profit of $35 per share, or $35,000.

Those options give John the right but not the on the date of the grant.

Last modified 12-Jan-2020 09:04