If you are one of the people that are somehow interested with backdating I guess this is the probable ideas you might think
. Every one has given their conclusion and each one has its point respectively. There are lots of issues and ideas that are coming up because of this backdating option. I bet as you read this article you also have your own ideas and judgment. Thats a normal thing but let us gives careful analysis about this matter and look at it on both sides. The public is still not interested in this back dating option but almost all investors and the media is somehow interested in it. The reasons go this way.
The first reason is that CEO and Executive is the one that is paying. If you are going to think of this argument this is somehow weak but the common reason that is used. Lots of executives have a big and terrible jobs to do and thousands of employees are one their hands.
Secondly, the SEC chairman Christopher Cox has affirmed that he will have a full disclosure guidelines and this will be issued soon. These guidelines must be implemented in the pay for executives. Though in this point there can be cases that the CEO will have other option as CEO parachute deals and tax perks.
The other thing is that most of the companies today dont have a better internal control before. The companies are now on the go to have a better internal control that will give us a balance check and will assure us that all the issues were tracked and being supervised. Well, its up to us to agree or to trust.
And lastly the other dilemma that is very common about this backdating option and it is about the poorly stated guidelines. They are often called as gray areas as most of the auditors only give ruling that is not so clear with this standard. But this is not really getting so much attention from the public.