Backdating of options


If the exercise price were $0, then options would be nothing more than free stock grants, and treated as such in the eyes of recipients.

But the great majority of public companies issue options with an exercise price equal to the market price at the date of grant.

20 to recommend they choose that day to grant options.

He added that he couldn’t remember a time when the board didn’t follow his advice.”So both the CEO and compensation committee are clearly in favor of giving Stryker shareholders as little cash as possible for each option granted to the CEO.

The SEC and other federal authorities are currently investigating more than 50 companies suspected of illegal, undisclosed options backdating practices, and the first criminal charges relating to these practices are expected shortly.