Brocade stock backdating dating lounge
Publicly traded companies must disclose any grants of options to directors as soon as possible.In fully listed companies that includes people discharging managerial responsibility.That way you make even more money when you sell the share at today's prices.The practice is not actually illegal in US law, as long as you tell the shareholders it is going on.US technology employees may live on their salaries, but whether they get truly rich or not depends on their share of the company.
That idea broke from academia into the business mainstream in 2006, and backdating scandals swept like wildfire in 2006, involving companies as famous as Apple, Dell and Broadcom.
OPINION: The former CEO of a US tech giant will have 21 long months in which to rue the day he ever heard of stock option backdating.
Brocade Communications' Gregory Reyes has been sent to prison for 21 months and fined million for backdating options.
Backdating option grants to, for example, just before an announcement that had a positive share price effect would be equivalent to granting the option in a prohibited period.
Directors are rightly highly sensitive about share dealing because they can be censured by the stock exchange; prosecuted for abusing the market by the Financial Services Authority; or even summarily dismissed by the company itself.