Microsoft stock option backdating dating your spouse
Although such universal stock options were credited with creating the incentive that fueled much of the technology revolution of the 1990s in Silicon Valley and elsewhere, they also were criticized because of the way they allowed companies to compensate employees without fully accounting for the expense.Amid growing criticism over the accounting rules, Microsoft switched to a program of offering stock grants to employees that vest over time and are accounted for as an expense.This means they must wait for the stock to appreciate before making any money.(For more insight, see ) Although it may appear shady, public companies can typically issue and price stock option grants as they see fit, but this will all depend on the terms and conditions of their stock option granting program.Gates spoke to the same annual conference that was the forum six years ago for a comment from his deputy Steve Ballmer, now Microsoft’s chief executive officer, that roiled an overheated stock market.The tech industry's stock option backdating scandal appears to be gathering steam.
“We probably never should have used stock options,” Gates told a conference of business journalists meeting in Seattle.
(MSNBC is a joint venture of Microsoft and NBC.) “I actually regret we ever used them,” he said.
“The approach we have now is just a better approach.” In 2003, Microsoft abandoned its signature program of providing stock options to all employees — a program that created thousands of “Microsoft millionaires” since the company went public in 1986.
The backdating concern occurs when the company does not disclose the facts behind the dating of the option.
(To learn more, read .) In short, it is this failure to disclose - rather than the backdating process itself - that is the crux of the options backdating scandal. To be clear, the majority of public companies handle their employee stock options programs in the traditional manner.