Erik lie option backdating

Posted by / 15-Sep-2017 09:31

Erik lie option backdating

But what factors are the courts considering when evaluating these derivative and class action complaints?Specifically, what behavior on the part of board members seemingly makes a difference?

Given the suspect nature of grants of this type, it is not at all surprising that the stock option backdating scandal of 2006 continues to thrive well into 2007.Without evidence of the director's knowing participation in what amounts to a violation of the stock option plan, hopeful plaintiffs might be unable to overcome this very difficult burden.Conversely, if a board authorized a grant of stock options either with the knowledge that they were being backdated in violation of a stockholder-approved stock option plan or by failing to adequately inform themselves, the directors would, more than likely, subject themselves to potential liability for breach of their fiduciary duties.Another consideration in evaluating the nuances of a stock option plan involves the timing for issuance of stock options.If a stock option plan included a requirement that stock options would be issued annually on a certain date or after the happening of a specified event, any claim attacking the viability of stock option grants based on the implication of backdating would not necessarily pass muster.

erik lie option backdating-17erik lie option backdating-12erik lie option backdating-89

This holds true even if the directors possessed a reasonable basis on which to grant such awards.

One thought on “erik lie option backdating”