Executive stock option plans backdating motivation

In this regard, we identified stock options grants as a potential trouble spot several years ago — well ahead of the curve.

We examined the academic literature that quantified the potential issues.

Looking backward, I'll ruminate a little about how we got here, and finally, at the risk of appearing to be or worse, actually being the secular equivalent of a sanctimonious twit, offer some thoughts looking forward on lessons we might take away from all of this. I have reached the point in life where I view the world through ridiculously expensive progressive lenses, but I guarantee you these lenses are not rose-colored. To recap much of what you may already have read or heard, the Division of Enforcement is investigating over 100 matters relating to potential abuses of employee stock options.

Executive stock option plans backdating motivation

On the other hand, companies could make in the money grants.

While they offended corporate shareholders, had to be expensed by the corporation, and had less favorable tax consequences, they had other advantages.

Thank you so much for spending time today on this important topic.

I thought I'd talk a little about where we are from an Enforcement perspective.

At the money options and other forms of performance-based compensation became even more attractive when the $1 million salary deductibility cap was enacted.