New rules under the Sarbanes-Oxley Act have reduced the practice to 10% of the companies granting options.
Only 7.7% of companies filing within the new two-day reporting window for options grants show a pattern of backdating, compared to 19.9% of companies that did not meet the requirements.
The backdating problem was first highlighted by Professor Erik Lie of the University of Iowa, who published his initial study in 2004.
Other similar practices are being reviewed by government officials as well.
Gattuso is Special Counsel in Saul Ewing's Litigation Department.
Her practice focuses on representing Delaware entities, their directors, members, partners and other constituencies in corporate litigation and advising those entities on issues involving corporate governance and fiduciary duties.
The granting of stock options to executives and directors began as a method by which a company could award those that managed its future.
This concept created more of a level playing field between directors and stockholders since, with the granting of stock options, both directors and stockholders were working toward the same end - namely, overall success of the company.