Sarbanes oxley backdating options updating software on iphone 4

It is suspected that these situations are not a coincidence and that the board or executives were granted options based on a past date in order to make these options more profitable.At first glance, call options represent the perfect way to tie an executive's level of compensation to the company's performance because as the company's share price increases, so does the payoff the executive will receive.

This process occurred when companies were only required to report the issuance of stock options to the SEC within two months of the grant date.This adjustment to the filing window came in with the Sarbanes-Oxley legislation.Options backdating occurs when companies grant options to their executives that correspond to a day where there was a significantly lower share price.In a backdated situation, however, the options would be granted today (August 16), but their listed day of granting would be June 1 in order to give the options a lower strike price.Options backdating defeats the purpose of linking an executive's compensation to the company's performance, because the bearer of the options will already have experienced a gain. This issue is one of intense public interest because it strikes at the heart of the relationship among a public company's management, its directors, and its shareholders.

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