Option backdating statistics
You go to collect your winnings, and there you see another bettor—the horse’s trainer!—swagger up to the cashier, place a huge wager on the race that was just run and collect a windfall. That’s essentially what happens when companies backdate corporate stock options for their executives. If your browser does not accept cookies, you cannot view this site.There are many reasons why a cookie could not be set correctly.You’re at the track and the pony you bet on came up a winner.
Broad-based options remain the norm in high-technology companies and have become more widely used in other industries as well.
If the company sets the prices of the options grant well below the market price, they will instantaneously generate an expense, which counts against income.
The backdating concern occurs when the company does not disclose the facts behind the dating of the option.
Options (the right to buy or sell stock at a set price) are only valuable when a company’s stock price rises—a grant of 100 options at per share is more valuable than 100 options granted at .
It’s a variation on the stock market’s golden “buy-low, sell-high” rule.