What is back dating stock options
The evidence is a significant V-shaped pattern in the stock price among a group of more than a thousand companies.
Before the option grants, companies’ stock price trended lower and stayed low on the grant date.
As we helped companies work through backdating issues, we found that a majority of the cases were linked to weak controls and not malpractice (with notable exceptions, of course).
Today, most companies schedule their option grants well in advance and on a predetermined date.