Backdating stock options mylan labs terradating com

Here is a rundown of the governance nightmares that are surfacing at these former stock market darlings.

Options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower.

backdating stock options mylan labs-7

2003: Purchased submicrometre CMOS fab from Philips in San Antonio, Texas, to ramp up capacity and support processes down to the 0.25-micrometre level.

in Colorado Springs, Colorado, adding Serial ATA (SATA), Serial Attached SCSI (SAS), and enclosure-management products to Maxim’s product portfolio.

This process makes the granted option in-the-money and of value to the holder.

This process occurred when companies were only required to report the issuance of stock options to the SEC within two months of the grant date.

the much different – and more financially beneficial – tax rules that apply when issuing “at the money” or "out of the money" stock options.

Additionally, companies can use backdating to produce greater executive incomes without having to report higher expenses to their shareholders, which can lower company earnings and/or cause the company to fall short of earnings predictions and public expectations.

Companies would simply wait for a period in which the company's stock price fell to a low and then moved higher within a two-month period.

The company would then grant the option but date it at or near its lowest point.

Headquartered in San Jose, California, the company has design centers, manufacturing facilities, and sales offices throughout the world. 1990: Purchased first wafer fabrication (fab) facility in Sunnyvale, California.

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