Apple option backdating scandal

Posted by / 19-Feb-2020 06:44

Apple option backdating scandal

For example, if one signs a contract on February 1, one may backdate it to January 31.

Backdating is usually illegal; for example, one may use backdating to evade taxes.

The mutual fund industry had its purge a few years ago, after fund-manager trading improprieties surfaced.

Some will argue that the fund sector is better today as a result of the crackdown.

Giving retroactive value to purchases from the earlier date.The practice of allowing a mutual fund shareholder to use previous purchases of the fund's shares so as to qualify for reduced commission charges on subsequent purchases.Backdating is used when a fund offers declining proportional sales charges on larger purchases.Let's hope that these past few months -- and whatever lies in store -- will clean up the practice of stock option grants for good. Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist.Yes, that's a long time with more than 20,000 bylines over those 22 years.

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In the context of corporate governance, the illegal practice of setting the date of options awarded as part of executive compensation to a period when the stock price was very low (rather than setting the date of the options on the date the award was made).