Backdating of options
So the scandal and court intrigue in the US is unlikely to be repeated here because tight regulation has ensured that a backdating culture simply never developed in the first place.All companies at some stage of their development are subject to strategic change.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.Many privately held companies rely on an HM Revenue and Customs-agreed valuation to fix a market value option price, typically for Enterprise Management Incentive ("EMI") option.
It is simply not an option for publicly listed companies to pretend that an option was granted days or even weeks ago.
Whether the business is at an early stage and requires start up funding and investment, or is a multinational public company looking to grow through merger or acquisition, our international corporate group is ideally placed to advise you.
We can help you achieve key objectives whether it is change of ownership, growth in dynamic markets, partnership or divestment of non-core business.
US technology employees may live on their salaries, but whether they get truly rich or not depends on their share of the company.
While lucky early employees might get actual shares, most workers will depend on stock options to cash in on the tech boom.Publicly traded companies must disclose any grants of options to directors as soon as possible.