What is wrong with backdating stock options top australian dating website
Cox had said in July that âbackdating is more easily determined than spring-loading, because of the nature of the evidence,â the LA Times reports.
SEC Commissioner Paul Atkins has argued that there is nothing wrong with spring-loading.
Taub spoke at a Financial Accounting Standards Board (FASB) advisory council meeting in New York on Tuesday, Reuters reports.
âSpring-loadingâ occurs when a company purposely schedules an option grant ahead of the announcement of good news that will boost the stock price.
It is not clear what the tax implications are for spring-loading, says S.
James Di Brnardo, a partner at Morgan Lewis & Bockius LLP, the Journal says.
Well, today, the Wall Street Journal reports the SEC is ready to press civil charges against the directors of one company under investigation for alleged backdating of stock options.
New developments today in Wall Street's widening stock options.
âBulletâdodgingâ involves setting the grant date just after a negative announcement that will be followed by a rebound in the stock price.
Taub told Reuters that the SEC was not trying to endorse the practice, and added âthe accounting for those kinds of options is clear.
We felt our hands were tied.â âThere are people in our building who have varying feelings about whether spring-loading is good or bad.
Accounting-wise we felt stuck.â âThis is accounting literature written in the 70's that clearly did not hold up well.
The case talks of the Brocade Communication in which three members of the executive were responsible for alterations of the grants issued to the employees.