Family dollar stock option backdating
Family dollar stock option backdating
The founding team included Jack Gifford, an industry pioneer since the 1960s; Fred Beck, an IC sales and distribution pioneer; Dave Bingham, General Electric’s Scientist of the Year in 1982; Steve Combs, a pioneer in wafer technologies and manufacturing; Lee Evans, also a pioneer in CMOS analog microchip design and General Electric’s Scientist of the Year in 1982; Dave Fullagar, inventor of the first internally compensated operational amplifier circuit; Roger Fuller, yet another pioneer in CMOS microchip design; Rich Hood, development director for some of the first microprocessor-controlled semiconductor test systems; and Dick Wilenken, who is acknowledged as the father of key analog switch and multiplexer technologies.
The practice of backdating executive stock options has received significant attention in the U. financial and legal literature, and has recently begun to be discussed in the Canadian legal literature. Backdating, in its most basic form, is the use of hindsight to selectively pick a local low point in a stock’s trading price and issue executive stock options stipulating the selected date as the grant date when, in fact, the options are granted at a later date. In 2003, the rate was reduced to 5% for individuals in the lowest two income brackets and 15% for all others. S. It is important to understand the differences in these rules, particularly the extent to which these differences affect the after-tax return to a Canadian executive compared to a U. Part II considers these personal income tax rules in detail. For individuals, the exemption amount depends on whether the individual is married and filing a joint return (in which case the amount is ,000) or is a surviving spouse (,000) or is single (,750). In particular, the relevant personal income tax rules in the two countries are compared and contrasted to demonstrate the role these rules may play in determining the demand for backdated options in the two countries. As will be shown, this is potentially an important component in the decision of executives to accept backdated stock options and may provide an additional incentive for executives to demand them in Canada. Maxim's stock was traded over-the-counter and quoted on the Pink Sheets until the company completed its restatement in 2008.Maxim's CFO Carl Jasper resigned due to an investigation into the issue by Maxim's board of directors.The first step in untangling the causes of backdating is to acknowledge that the backdating phenomenon must be driven by both supply and demand factors. Lipman, Incentive Stock Options and the Alternative Minimum Tax: The Worst of Time, 39 Harv. Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub.
From the supply side, the question is what motivates a firm to grant a backdated option, and from the demand side, what motivates an executive to demand (or, at the very least, accept) a backdated option? Catherine Dearlove has extensive experience advising clients on corporate governance and fiduciary duty issues, both in the courtroom and in the boardroom.She has appeared as lead or co-counsel in many notable cases in the Court of Chancery and the Delaware Supreme Court, representing Delaware corporations, LLCs, limited partnerships, and their officers, directors, and managers in M&A disputes, derivative and class actions, and corporate control disputes.Annual revenue reached 0 million in fiscal year 1998 and in fiscal 2011 totaled over .47 billion.From October 2007 to October 2008, Maxim's common stock was delisted from the Nasdaq Stock Exchange due to the company's inability to file financial statements related to stock option backdating.In addition, Catherine’s clients rely on her advice to address their complex corporate governance and fiduciary issues outside of litigation.