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Collateral Ethics & Privilege | Business Ethics | Tips & Insights | Practice Resources For the benefit of Rip Van Winkle, let’s review backdating. Backdatiin an options grant is not, per se, illegal. It becomes problematic when a backdated option grant results in value to the recipient because the exerccis price of the option is below the share price on the day it is granted, and is not properly accounted for as a compensation expense.2 And it becomes a serious problem when the actor knew that it...

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