Repricing Underwater Stock Options

What Can Companies Do About Underwater Stock Options?

It depends. Companies that have sufficient shares available in their equity plans can take advantage of lower market prices and grant additional ...

Stock Option Exchange Programs - Harter Secrest & Emery LLP

Stock Option Exchange Programs: One Approach to. Addressing “Underwater” Stock Options. Many publicly traded companies use equity compensation to motivate ...

Stock Options: Overused and Underwater | Workforce.com

Stock Options: Overused and Underwater · Do nothing at all. · Grant additional options. · Grant restricted shares (may be tied to performance), or ...

Stock Option Repricing: Heads I Win, Tails You Lose - Academia.edu

Whether or not to reprice stock options represents one such ethical dilemma. Repricing can help exodus of talented employees and motivate them to improve firm ...

Evidence from Traditional Repricings, 6&1 Exchanges and Makeup ...

... repricing firms, and makeup grant firms with traditional repricing firms. ... underwater stock options. JEL Classification: J33, G34, M41. Suggested ...

The Effect of Stock Option Repricing on Employee Turnover

We examine whether repricing stock options reduces both executive and overall employee turnover using a sample of firms that reprice underwater stock ...

Is a Stock Price Forfeiture Provision the Answer? - NASPP

There haven't been many great solutions to address the conundrum of underwater options. Repricing the option (modifying the option such that the ...

Underwater Stock Options & how to address them in the current ...

To address these problems, some companies will likely explore re-pricing the options or an exchange program whereby employees can trade-in ...

Repricing Stock Options: The Rule 701 Math - The Startup Law Blog

There may be times during the life of your company in which you will want to reprice underwater stock options. Depending on your cap table ...

5 steps to reprice your options after a 409A valuation | Eqvista

What are underwater stock options? ... Stock options are typically granted with a strike price that is fixed to the FMV of the common stock at the grant date.

Underwater Stock Options. Strategies for steering through turbulent ...

What is an "underwater stock option"? A stock option is considered to be underwater when the exercise price for the company's stock exceeds the current market ...

Stock Option Repricing in Europe - ResearchGate

On the day of the repricing, the exercise prices of the outstanding options are on average 60% above the share prices. This underwater problem is corrected ...

Companies Awash in Underwater Stock Options - Compliance Week

Stock options end up “underwater” when the grant-date value is greater than the current market price for the underlying stock, making them ...

Stock Option Repricing: What Do Tech Companies Need to Know ...

Taryn Cannataro: Today, we will be discussing a topic that has been coming up frequently in response to recent economic changes, stock option ...

Does Repricing Stock Options Work? - ProQuest

Repricing underwater stock options won't help you hold onto top executives, but it can reduce turnover among lower-level employees.

The Role of Power and Politics in the Repricing of Executive Options

Option repricing generally occurs after a sharp decline in the stock price of a company that has placed the current market value of the company's stock below ...

Companies Move to Reprice Employees' Stock Options - WSJ

Options repricing surged in popularity after the dot-com bust in the early 2000s, then again following the financial crisis in 2009, when many ...

Underwater stock compensation: what options do employers have?

Companies considering an exchange/repricing should also consider the effects that the underwater options have on employees. What percentage of an employee's ...

Characteristics of Firms Responding to Underwater Employee Stock ...

A makeup grant potentially increases the total option value lost and avoids potential expense recognition, but is more dilutive since old ...

'Underwater' stock options and 'repricing'– The next dilemmas

Companies, usually with stockholder approval, can “reprice” employee stock options, or offer a stock option swap for new options at a lower ...