Microsoft stock option backdating
Those include Altera, Applied Micro Circuits, Asyst Technologies, CNET Networks (publisher of CNET News.com), Equinix, Foundry Networks, Intuit, Marvell Technology Group, RSA Security and Veri Sign. Stock options give the recipient the right to buy a share of a company's stock at a price called the strike price, which is equal to the value of the stock on a certain date.If, for example, the strike price is and the shares now trade at , each option would be worth .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.
Also, some companies have independently confirmed that they've been contacted by federal investigators.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.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.