Backdating in

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Backdating in most circumstances is considered fraudulent and illegal. For instance, backdating a claim for a past period is taken as legal.Life insurance policies are issued at the your life insurance age.If someone presents you with a spreadsheet of the last month's stock prices and asks you to pick the date on which you want to pretend that you granted, or were granted, several million options, might that not at least spur further inquiry?When then-general counsel Nancy Heinen emailed Apple (AAPL) CEO Steve Jobs such a spreadsheet on January 30, 2001, she noted that it was a bad idea to choose January 2 as the grant date--even though that was the day the stock had been at its lowest--if they wanted "to avoid any perception that the Board was acting in appropriately [sic] for insiders prior to Macworld announcements." (They ultimately chose one of the next-best dates from after Macworld.) Now isn't it obvious to everyone on that email that shareholders are being misled?This is important to note, because the grant date is what determines the exercise price on the options.For instance, if the board meeting is on January 3, 2012, and Company XYZ stock closes at per share that day, then the exercise price of John's 2012 stock are backdated, then his exercise price is only per share.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.

If the timing works out, we can sometimes backdate your policy and keep your life insurance age of the insured down by one year.

And that one year can make a big difference in the cost of your policy.

For the most part, life insurance premiums increase as you get older.

Contrast that with an agreement dated “effective as of December 31, 2012” when the parties did not reach agreement until January 2013, but used the 2012 date to get last year’s substantially lower long term capital gain rates. For a very good article on this topic from an excellent resource for the M & A lawyer, see Backdating (63 Bus.

grants 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.

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