Options backdating

Resetting the date on which a share option was awarded at an exercise price equal to the value on the to an earlier, more advantageous date (with a lower price of the underlying stock) so enabling purchasing shares at a discounted price. Backdating of stock options is not illegal if the grantor of the options properly discloses the backdating at the actual time of grant. Many legal issues arising from backdating are a result of the grantor falsifying documents submitted to investors and regulators in an effort to conceal the backdating.