Does it matter if this effective date is prior to the date the parties actually entered into the agreement?
According to a study by Erik Lie, a finance professor at the University of Iowa, more than 2,000 companies used options backdating in some form to reward their senior executives between 19.
Magazines: starting a magazine subscription with an issue prior to the current issue being served; also called .
Back dating is used by the publisher as a rate base managament tool or to reduce an excessive back issue inventory.
The process of granting an option that is dated prior to the date that the company granted that option.
In this way, the exercise price of the granted option can be set at a lower price than that of the company's stock at the granting date.
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This adjustment to the filing window came in with the Sarbanes-Oxley legislation.