You should apply for housing benefit and / or council tax support as soon as you can.If you didn’t manage to submit an application from the date you were entitled we may be able to backdate your claim.The practice sometimes also occurs in the insurance industry, whereby policy issuers make the effective date of a policy (or claim) earlier than the application date in order to obtain a lower premium for the customer (or obtain better claim results). When he was hired, the Company XYZ board of directors offered John an attractive salary as well as an annual grant of 1,000 Company XYZ stock options.Those options give John the right but not the on the date of the grant.Backdating your claim means we will start your claim from the date you were entitled instead of the date we received your application. Requesting for your claim to be backdated To request for you claim to be backdated you will need to submit the request in writing.You will need to state the reason you would like you claim to be backdated and explain the reason you were unable to apply earlier.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.
Typically, the grant date of the stock options is the same as the date of the board meeting.
In our example, backdating the options is the same as giving John Doe a check for ,000 -- without recording that ,000 on the within two business days.
You will need to have had a good reason for not making your claim earlier.
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.
He pays the per share exercise price and can turn around and sell those shares on the exchange for each, netting a profit of per share, or ,000.
Granting stock options to employees is a generally accepted and perfectly legal form of compensating employees. Critics of backdating argue that the practice is difficult to detect and thus encourages boards and executives to use it to synthesize more creative compensation packages.