Employment contract back dating
Last week the Do J brought criminal charges against two Brocade Communications Systems executives, while the SEC filed a civil suit against the same two and the CFO.As expected, the charges focused on backdating stock options by doctoring employment documents, neglecting to record the stock-option expense on the company’s books, and misleading investors.
There are ways, however, to ensure that past disclosures remain confidential and then preserve that confidentiality moving forward. While adding a retroactive date to a legal agreement is not uncommon, you need to make sure you don’t come out of left field with a retroactive NDA in your hand after weeks of cooperative negotiations, conversations or partnerships.
Hindsight is always 20/20 and so it goes in the professional world, as well.