Our policy is that employers should take reasonable steps to put all workers back in the position they would have been in if they had complied on time. For example, if your client fails to enrol a worker from their staging date, they should: We have a range of powers for use in our non-compliance investigations.As well as requesting information from employers voluntarily, we're able to issue formal notices asking for information and we're able to carry out inspections at the employer's premises.Do you ever wish that you could turn back the hands of time?Some executives have, well, at least when it comes to their stock options.If the company sets the prices of the options grant well below the market price, they will instantaneously generate an expense, which counts against income.
However, when granting options, the details of the grant must be disclosed, meaning that a company must clearly inform the investment community of the date that the option was granted and the exercise price. In addition, the company must also properly account for the expense of the options grant in their financials.
(To learn more, read .) In short, it is this failure to disclose - rather than the backdating process itself - that is the crux of the options backdating scandal. To be clear, the majority of public companies handle their employee stock options programs in the traditional manner.
That is, they grant their executives stock options with an exercise price (or price at which the employee can purchase the common stock at a later date) equivalent to the market price at the time of the option grant.
However, if they have chosen to ignore their duties, we may use our powers where necessary to ensure compliance.
If your client is late complying or thinks they might be, they should tell us about it straight away.