How backdating

Those options give John the right but not the on the date of the grant.The board formally grants the stock options to John every year at its January board meeting.

grants to one that is earlier than the actual grant date in order to place a lower exercise price on the options and thus enhance the potential profits from the exercise of those stock options.

The practice sometimes also occurs in the insurance industry, whereby policy issuers make the effective date of a policy (or claim) earlier than the application date in order to obtain a lower premium for the customer (or obtain better claim results). When he was hired, the Company XYZ board of directors offered John an attractive salary as well as an annual grant of 1,000 Company XYZ stock options.

The error occurred during the transfer process when claimants’ full entitlements were not properly checked.

The DWP has said that they are working to identify and repay people affected and that some payments have already started.

This section of the website provides information about when claims can be backdated as well as links to HMRC guidance about the backdating process.

Now that Universal Credit (UC) is available across the UK, most people can no longer make a brand new claim for tax credits, even where that fresh tax credits claim would otherwise be backdated to cover a period before the UC claim was made.

Faizah claimed asylum as a refugee on 12th May 2008 and was granted refugee status on 10th April 2012.

She applies for tax credits on 8th May 2012 (within one month).

Granting stock options to employees is a generally accepted and perfectly legal form of compensating employees. Critics of backdating argue that the practice is difficult to detect and thus encourages boards and executives to use it to synthesize more creative compensation packages.

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