These example sentences are selected automatically from various online news sources to reflect current usage of the word 'backdate. See more words from the same year.
More Definitions for backdate. In the finance world, backdating usually refers to the practice Backdating payroll registration definition changing the dates of option
Backdating payroll registration definition to one that is earlier than the actual grant date in order to place a lower exercise price on the options and thus enhance the potential profits from the exercise of those stock options.
The practice sometimes also occurs in the insurance industry, whereby policy issuers make
Backdating payroll registration definition effective date of a policy or claim earlier Backdating payroll registration definition payroll registration definition the application date in order to obtain a lower premium for customer or obtain better claim results.
Those options give John the right but not the obligation to purchase 1, shares of Company XYZ stock at the market price on the date of the grant. The board formally grants the stock options to John every year at its January board meeting.
Typically, the grant date of the stock options is the same as the date of the board meeting. This is important to note, because the grant date is what determines the exercise price on the options. Let's say that John now decides to exercise his stock options.
Granting stock options to employees is a generally accepted and perfectly legal form of compensating employees. Backdating the options is not. Critics of backdating Backdating payroll registration definition that the practice is difficult to detect and thus encourages boards and executives to use it to synthesize more creative compensation packages. That, in turn, understates the company's expenses and overstates its profits, which is a violation of generally accepted accounting principles and has been the grounds for a variety of fraud and miscellaneous charges from federal, state and local regulators.
In addition to being illegal, backdating isn't always a sure thing. The general reason companies backdate options is to create a lower exercise price, which in turn increases the probability that exercising the options will make more money for the optionee. Stock prices change, however, and there is no guarantee that any stock price will ever be above the exercise price. See
Backdating payroll registration definition full definition for backdate in the English Language Learners Dictionary.
See words that rhyme with backdate. What made you want to look backdate? Please tell us where you read or heard it including the quote, if possible. Test Your Knowledge - and learn some interesting things along the way.
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The story of an imaginary word that managed to sneak past our editors and enter the dictionary. How to use a word that literally drives some people nuts.
The awkward case of 'his or her'.
Can you spell these 10 commonly misspelled words? Examples of backdate in a Sentence an increase in Backdating payroll registration definition backdated to the beginning of the year. Recent Examples Backdating payroll registration definition the Web
Backdating payroll registration definition Orioles would have to make such a move by Tuesday in order to backdate it to Sunday and get Bundy back sooner.
Right-hander Bundy rolled ankle on bases, next start in jeopardy," 25 June Kaufman, a former head of quality control at Hospira Inc. First Noah Syndergaard, Then Steven Matz," 29 May By order of the secretary of the Army, the promotion was backdated to Backdating payroll registration definition to the proclamation read at the ceremony.
First Known Use of backdatein the meaning defined above.
Learn More about backdate. Resources for backdate Time Traveler! Explore the year a word first appeared. Dictionary Entries near backdate backcourtman backcourtmate backcross backdate back dive backdoor backdoor draft. Statistics for backdate Look-up Popularity. Time Traveler for backdate The first known use of backdate was in See more words from the same year.
Financial Definition of backdate. What It Is In the finance world, backdating usually refers to the practice of changing the dates of option grants to one that is earlier than the actual grant date in order to place lower exercise price on the options and thus enhance the potential profits from the exercise of those stock options.
Why It Matters Granting stock options to employees Backdating payroll registration definition a generally accepted and perfectly legal form of compensating employees. English Language Learners
Backdating payroll registration definition of backdate. More from Merriam-Webster on backdate See words that rhyme with backdate. on backdate What made you want to look up backdate?
Get Word of the Day daily email! Need even more definitions? Can 'Task' Be Used as a Verb? Ghost Word The Backdating payroll registration definition of an imaginary word that managed to sneak past our editors and enter the dictionary.
Literally How to use a word that literally drives some people nuts. Is Singular 'They' a Better Choice?