Stock Option Backdating is the practice of granting employee stock options with a grant date prior to the actual date of when the options were granted. Companies grant the option at the lowest point, thus creating an immediate gain on the option during times of rising stock prices. In the past companies were required to report stock option grants to the Securities and Exchange Commission within two months of the grant date; now companies are required to report grants within two business days.
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PartnerMEYERS & HEIM LLP
ProfessorNEW YORK UNIVERSITY (INC)
Associate Director Grant Thornton India
PrincipalLeonard Associates
ConsultantJustin Hupet
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How Stock Option Backdating Can Be Detected
July 21, 2009