What is back dating stock options

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Publicly traded companies must disclose any grants of options to directors as soon as possible.

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Even for privately held companies the scope to backdate an option grant is very limited indeed.That way you make even more money when you sell the share at today's prices.The practice is not actually illegal in US law, as long as you tell the shareholders it is going on.OPINION: The former CEO of a US tech giant will have 21 long months in which to rue the day he ever heard of stock option backdating.Brocade Communications' Gregory Reyes has been sent to prison for 21 months and fined million for backdating options.

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