The U.S. Securities and Exchange Commission aims to issue guidelines on the appropriate timing for companies to issue stock options this summer when it proposes new rules dealing with executive compensation, SEC Chairman Christopher Cox said on Monday.
Dealing with back-dating of options -- the practice of setting a grant price retroactively at a lower, more profitable level -- is of very significant interest to the agency in both policy terms and on an enforcement level, the SEC chief said.
"We expect to publish guidance this summer at the same time we vote on our final rules for executive compensation. The executive compensation rule will almost certainly contain some specific features dealing with options back-dating," Cox told reporters after a speech at Stanford University.
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