Disclaimer backdating options
In the US at grant date, the options are reported to be issued “At-the-money” i.e.
when the exercise/strike price is set to the market price.
Brocade disclosed this grant to its shareholders and investors in the 2002 Proxy Statement according to the rules of the SEC.
A week later the stock was trading at /share and a month later at /share.
In this article, the author writes: “Backdating by itself is not generally, at least with respect to private agreements, illegal.
About The Author Arushi Bhandari is an MBA and a licensed CPA in the state of California.Lawyers who were trained in commonwealth jurisdictions may have an ingrained concept that backdating a document is generally improper, if not illegal.