Backdating of options
Additionally, given my risk function and the risk function of VCs, this appears to be a better deal for everyone.
Like most people, extra income gives me diminishing utility, but VCs have an arguably nearly linear utility in income.
This article will attempt to provide reasons why this issue is important, why civil and criminal authorities are investigating, and why it is critical that public companies who issued options over the past...
Vitesse Semiconductor was a fabless American semiconductor company based in Camarillo, California, which developed high-performance Ethernet integrated circuits solutions for Carrier, Enterprise networks.
The total compensation to executives granted back-dated options was either unchanged or, perhaps, lower than it would have been, since people tend to irrationally over-value a bird in hand (in the money options) to a dozen in the bush (out of the money options).
But it all became worse than a pseudo-scandal, in fact.
On March 18, 2015 Microsemi Corporation and Vitesse Semiconductor Corporation jointly announced that Microsemi would acquire Vitesse. Vitesse was founded by Al Joseph in 1984 as Vitesse Electronics Corporation.
CEOs at other companies have been forced to resign for such activities. His job may be saved by the fact that he did not directly profit.It markets and sells its products directly to OEMs and original design manufacturers, as well as through third-party electronic component distributors and manufacturing service providers.I often talk to startups that claim that their compensation package has a higher expected value than the equivalent package at a place like Facebook, Google, Twitter, or Snapchat.Law360, New York (June 15, 2006, AM EDT) -- It is virtually impossible to pick up a newspaper these days and not see an article about the ever-growing list of companies being caught up in investigations concerning allegations of backdated stock options.Despite the attention paid to this issue, little has been written explaining why backdating options is problematic and potentially illegal.