Good News on 8-Ks For Option Grants

News Brief

By: Cydney Posner

Corporate Counsel is now reporting that, notwithstanding the SEC staff comments at the ABA meeting that executive option grants must be reported, fortunately, the staff has now given Corporate Counsel contrary oral advice: "[T]he SEC Staff has provided oral informal guidance that if the form of an option agreement is on file then - in accordance with Instruction 1 to S-K Item 601(b)(10) - the grant of an option does NOT trigger the need to file an 8-K (assuming the award grant fits within the form of award already on file with the SEC). Further, the adoption of an equity compensation plan that must be approved by shareholders does not trigger an 8-K until shareholder approval is obtained."


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