New Accounting Issue

Today, I heard new term called "Backdating" during my managerial accounting class.
What is backdating???
I had no idea.
At first, my prof. was talking about managerial rewards, such as cash compensation, stock-based compensation.
And then suddenly one student start asking about this "backdating."
anyway, I had no idea, so I wiki-ed (I created this. its definition is to search something on wikipedia).
the definition on the wikipedia is as follows
companies that back date their options select a date for the option that is often earlier than when the grant is made. This allows them to choose a date when the value of the option is more favorable to the employee receiving it. (Options backdating - Wikipedia, the free encyclopedia)
Simply, there are a few days which the employees can choose to get the stock.
Obviously, by doing this, employees can get the lowest price of the company stock.
Here is a problem....
Isn't it Insider trading??
since the employees has more internal information than other investers, it is very natural that the employees are able to get lower price than the other investers.
This event perfectly fits into one of the definition of insider trading. (http://en.wikipedia.org/wiki/Insider_trading)
Although it is not illegal, it's clearly unethical behavior of the company.

However, if I were the person who can get the stock option, then I would want to get it as cheap price as possible. :)

Currently, SEC is investigating about this, so let's see how they will comment.....