Final answer:
Backdating is the manipulation of stock option effective dates to secure extra pay for management, which can be considered advantageous or potentially unethical, depending on its legality and transparency.
Step-by-step explanation:
The practice where the effective dates on stock options are deliberately changed for the purpose of securing extra pay for management is known as backdating. This practice can be popular with both economists and the general public when perceived as a means to effectively increase the payment received for work. However, it can also lead to significant legal and ethical issues if not conducted in accordance with regulatory standards. When backdating is done properly, it can help align the interests of management with those of the shareholders, but when abused, it undermines corporate governance and market integrity.