For an option granted at $100 per share, the various valuation models tested in our research predicted a range of gains for individual companies of $10 to $97.
A falling stock price means more shares dispensed to the executive in an option grant.
Most of the backdating cases, including the one against Mr. Reyes, hinge on proving that the defendants knowingly manipulated an option grant date to defraud investors.
In the accounting board's opinion, applying a new price to an option grant program automatically makes it a variable plan.
The court said this action constituted disloyalty, which it said had permeated his relationship with Anderson Weinroth from a failure to disclose an option grant from Zip on Oct. 15, 1999, until he left nine months later.
The cost of an option grant should be expensed over the time, typically the vesting period, when the motivated and retained employee is presumed to be earning the grant by generating additional revenues for the company.
The other executive, Fred D. Anderson, the company's former chief financial officer, is preparing to enter into a settlement with the S.E.C. over the dating of an option grant to senior officials in January 2001, according to a person close to the settlement negotiations.
When an employee exercises an option grant, the tax liability on the transaction is transferred from the company to him.
Share Number: If you get an option grant for, say, 100,000 shares, this does sound pretty good, right?
Salmond's party had originally pushed for the referendum to include an alternative option granting his government greater powers, but the Sept. 18, 2014, plebiscite will allow only a yes-no vote on whether Scotland should go it alone.
