Free mobile kenyan adult dating site - Backdating option scandal stock
(The practice seems to have been particularly popular in the tech sector.) In 2007, New York City's municipal employee pension fund sued Apple over the backdated options.A federal judge dismissed the case but class-action lawyers working for the pension fund kept the litigation going.In comparison, had the options been granted at the year-end price when the decision to grant to options actually might have been made, the year-end intrinsic value would have been zero.
The Center for Class Action Fairness would love to object to such a blatantly illegal settlement.
But it can't do so in a vacuum: it can only do so on behalf of a class member who is being ripped off by these attorneys.
It was the pseudo-scandal launched by the Wall Street Journal's investigative unit, after its reporters began following up on an academic report that demonstrated many executive stock options awards were too well-timed to be plausible.
The basic idea was that many companies seemed to award stock options on days when their stocks were at low-points, which increased the value of the options when the stock increased and made the stock cheaper to buy for the executives.
ESOs are usually granted at-the-money, i.e., the exercise price of the options is set to equal the market price of the underlying stock on the grant date.
Because the option value is higher if the exercise price is lower, executives prefer to be granted options when the stock price is at its lowest.
No one's pay was "inflated" by backdating, unless you assume that the alternative would have been awarding executives exactly the same number of options at less-advantageous prices.
Which, of course, you shouldn't assume since any sensible employee can see that if his each stock option is worth less, he should get more of them.
We'd all have been better off if backdating was seen for what it really was: a rational response to an irrational accounting rule.
Anyway, Apple was alleged to have backdated a number of options.
It's a legal term of art in class action settlements.Tags: Adult Dating, affair dating, sex dating