Fremont compensation backdating
There is also some relatively early anecdotal evidence of backdating.A particularly interesting example is that of Micrel Inc.
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(In fact, it can be argued that if these conditions hold, there is little reason to backdating options, because the firm can simply grant in-the-money options instead.)David Yermack of NYU was the first researcher to document some peculiar stock price patterns around ESO grants.This pioneering study was published in the Journal of Finance in 1997, and is definitely worth reading.
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