Benefits of backdating stock options

Administrative Tools Cost-Basis Reporting Deferred Compensation Legislation Economic Stimulus Legislation Employee Communications Employee Stock Purchase Plans Executive Compensation Disclosures Global Stock Plans Hold Through Retirement HSR Act IFRS 2 Incentive Stock Options Insiders Internal Controls ISS M&A MSU and TSR Awards Nonqualified Stock Options Option Backdating Option Valuation Performance Plans Plan Design Private and Pre-IPO Proxy Restricted Stock Rule 10b5-1 Rule 144 SAS 70 Resources Say On Pay Section 16 Section 162(m) Section 409A Section 6039 Shareholder Approval State Taxes Stock Ownership Guidelines Stock Plan Expensing Stock-Settled SARs Surveys and Studies Tax Code Tax Withholding and Reporting Transferable Stock Options TSR and MSU Awards Underwater Options Vendor Management Year-End Procedures Jul/Aug: Hot Topics in Stock Compensation, Update on SEC & Regulatory Trends, the Rise of Multiple Metrics in Performance Equity, the Power of One Process for Effective Administration, and much more...Executive compensation or executive pay is composed of the financial compensation and other non-financial awards received by an executive from their firm for their service to the organization.For example, the Sales Director's performance related bonus may be based on incremental revenue growth turnover; a CEO's could be based on incremental profitability and revenue growth.Bonuses are after-the-fact (not formula driven) and often discretionary.This combination is referred to as Total Cash Compensation (TCC).Short-term incentives usually are formula-driven and have some performance criteria attached depending on the role of the executive.

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Owning stock options doesn't mean you have to exercise them.Observers differ as to whether this rise is a natural and beneficial result of competition for scarce business talent that can add greatly to stockholder value in large companies, or a socially harmful phenomenon brought about by social and political changes that have given executives greater control over their own pay.In a modern corporation, the CEO and other top executives are often paid salary plus short-term incentives or bonuses.This allocated amount is an investment and is a nontaxable cost basis.Alternatively, you might buy a stock warrant on the market.

Benefits of backdating stock options