MLchartDataset catalogue

Option backdating

Term · Insurance and risk management · MLC-T-INS-002426

The illegal practice of retroactively setting the grant date of stock options to a prior date when the company's stock price was lower. This manipulation allows the recipient to realize a larger profit when exercising the options. It is considered a form of accounting fraud and can lead to severe legal penalties for the individuals and companies involved.

Table 1. Record
IdentifierMLC-T-INS-002426
FieldInsurance and risk management
SubjectManagement Liability
Record as JSON 
{
  "id": "MLC-T-INS-002426",
  "term": "Option backdating",
  "field": "Insurance and risk management",
  "definition": "The illegal practice of retroactively setting the grant date of stock options to a prior date when the company's stock price was lower. This manipulation allows the recipient to realize a larger profit when exercising the options. It is considered a form of accounting fraud and can lead to severe legal penalties for the individuals and companies involved.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/option-backdating/"
}

Record 2,398 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.