Free regional adult chat no sign up - Backdating options definition
Those options give John the right but not the on the date of the grant.
The board formally grants the stock options to John every year at its January board meeting.
However, if those option-granted shares were held for over a year, the total amount of taxes paid could be reduced to as low as 15%.
Since some executives have options where the total value of underlying securities are worth millions of dollars, so backdating the exercise date would save them tens of thousands of dollars in taxes.
In addition to being illegal, backdating isn't always a sure thing.