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Option Grant Practices: A Trap for the Unwary – Spring-Loading and Bullet-Dodging

Proskauer's Employee Benefits & Executive Compensa

A potentially overlooked but important issue that public companies should have in mind when granting option or option-like awards is avoiding the unintentional appearance of “spring-loading” and “bullet-dodging,” both of which have been a recent focus of the SEC and shareholders and viewed as potentially poor corporate governance practices.