Tax Implications of Alleged Options Backdating

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Cornerstone Research analyzed corporate and individual tax treatments of employee stock options related to stock option backdating allegations.

Cornerstone Research analyzed corporate and individual tax treatments of employee stock options related to stock option backdating allegations. For corporations we examined the financial statement changes of alternative treatments and gauged whether those are material changes. We reviewed how the individuals reported their stock options on their taxes as evidence of when and how stock options were granted.