Benefits of backdating stock options

Companies grant stock options to motivate employees.

A stock option is a type of investment that allows the holder to buy a certain number of shares of a company’s stock at a locked-in price.

For example, the Sales Director's performance related bonus may be based on incremental revenue growth turnover; a CEO's could be based on incremental profitability and revenue growth.

Bonuses are after-the-fact (not formula driven) and often discretionary.

You can hold on to the stock options until some future date and then make a tidy profit.Any personal information collected will be administered in accordance with the Department of Employment and Social Development Act, the Privacy Act and other applicable privacy laws governing the protection of personal information under the control of the Department of Employment and Social Development.Survey responses will not be attributed to individuals.If, on the other hand, a stock's price falls after stock options are issued, the employee doesn't lose anything tangible.Owning stock options doesn't mean you have to exercise them.