Home depot stock option backdating
His discussion included, among other items, legal ways to backdate stock options.
Logically, we began to wonder why so many companies were illegally backdating options when the risk is so high.
Further investigation has revealed the complexities involved with a legal backdating program.
Because of these complexities, many companies are unable to keep all paperwork in line.
As a result, we found that many companies lose top talent, are scrutinized by regulatory bodies, and are subject to fines and penalties.
The negative effects on shareholder value are significant cause for concern.
while completing my Masters of Science in Accounting & Taxation at the University of Hartford.
Background American stock options are a type of derivative contract that gives the holder the right to buy or company stock at a set price (strike price) during a specified period..It is this curious incongruence that we set out to explore in the foregoing sections.In early research, we found an excellent resource created by a business professor in the Midwest.In 1999, even Microsoft encountered problems with its options scheme.Clearly, backdating was a popular practice in executive compensation.