The criminal case against the Shanahans ended when Shanahan Sr. In 2009, the SEC alleged that Michael Shanahan Jr., as an outside director for ESSI, violated numerous federal securities laws by participating in the grant of backdated stock options to ESSI officials including his father. today affirmed the dismissal of the Securities and Exchange Commission’s case against Michael Shanahan Jr., former director of Engineered Support Systems Inc. In a unanimous opinion, the judges agreed that the SEC’s evidence against Shanahan Jr. “So much of the options backdating scandal was driven by unfair hindsight perspective, and this was a fitting postscript for an enforcement fad that went way too far,” Gasner said. and his father, Michael Shanahan Sr., as well as the company’s chief financial officer, charging them with criminal fraud and records-keeping violations.
While options backdating is not always illegal,  it has been called "cheating the corporation in order to give the CEO more money than was authorized.
To be legal, backdating must be clearly communicated to the company shareholders, properly reflected in earnings, and properly reflected in tax calculations.
This is most often a complicated exercise if the plan needs to comply with the laws of various jurisdictions where the employees are located.
There may also be special tax incentives if the share options are structured in a particular manner, for instance, in Singapore, 50% of the gains of up to an aggregate of S$10 million from entrepreneurial stock options may be exempt from tax if the employee share ownership plan complies with the requisite conditions.
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Näheres erfahren Sie bei , die dieses Verfahren zur Verfügung gestellt haben.“We are thrilled to see Mike so thoroughly vindicated after a long ordeal for his entire family,” Gasner said.Stuart Gasner centers his practice in the areas of white collar criminal and securities defense, intellectual property litigation and complex corporate disputes.The problem with this practice, according to the SEC, was that stock option backdating, while difficult to prove, could be considered a criminal act 6.One of the larger backdating scandals occurred at Brocade Communicationsa data storage company. was reckless or even negligent in serving as a member of ESSI’s compensation committee. Partner Michael Celio co-authored the winning brief with Gasner, who argued the appeal in January of this year.