Ethics of options repricing and backdating
In fact, use that as a search term in Google, and you will find lots of authoritative literature on this subject.
Summarize the best and most authoritative literature you can find on this subject. This is the most important Question in the Homework Assignment for this week, so make sure your research and answers are well grounded, explained, and written.
The timing of this backdating and repricing of the stock options occurred it seems in the years that followed the bursting of the Internet stock market bubble in the years 20, followed closely the events of September 11, 2001.
Considering that nearly 200 companies have been caught in the swarm of scandal surrounding the backdating of stock options, more people are questioning whether backdating is really such a bad thing.
Now that Silicon Valley icon Steve Jobs has become one of the highest-profile personalities to become ensnared, perhaps it's really just much ado about nothing. A tempest in a teapot As we've recounted on these pages many times, a stock option gives the holder the right to buy a stock at a certain price -- called the "exercise" or "strike" price -- at some point in the future.
It gives the manager instant extra profits on the options.
Apple shareholders have been particularly unfazed by the revelation that Jobs was not only aware that backdating was occurring, but also intimately involved in picking the dates to which the stock options were backdated.
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Summarize in your own words the results of that disposition.