Google stock option repricing definition
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Google Reprices Employee Stock Options - CBS News
We use cookies and browser capability checks to help us deliver our online services, including to learn if you enabled Flash for video or ad blocking. By using our website or by closing this message box, you agree to our use of browser capability checks, and to our use of cookies as described in our Cookie Policy. Stock-option exchanges are making a bit of a comeback, despite a strong stock market and worries about the shareholder pushback they can generate.
Such exchanges, which let employees trade nearly worthless options for new options or restricted stock, have been proposed or implemented by at least 10 publicly traded companies so far this year, according to proxy-advisory firm Institutional Shareholder Services—up from seven last year, and three in Options repricing surged in popularity after the dot-com bust in the early s, then again following the financial crisis in , when many employee stock options became underwater: Eighty companies including Apple Inc.
For the most part, the trend these days is confined to younger firms that have recently gone public, said Brett Harsen, partner for Radford, a part of Aon Hewitt, a consulting company.
Shares of Jive Software Inc. The Palo Alto, Calif. In the exchange process, Jive and other companies are offering employees restricted stock units that automatically convert to shares in place of the options to eliminate future uncertainty.
Companies typically take great pains to ensure that exchange terms are acceptable to shareholders as well as employees. While shareholders approve most exchanges, companies only float them when they know such approval is forthcoming, said Mr.
Since , Jive has used restricted stock exclusively for nonexecutive employee equity awards, said Mr. Restricted stock has become much more popular partly because it is easier to account for. It also lowers the risk to employees. Such options exchanges can benefit companies by reducing compensation expenses, since companies are required to expense the value of outstanding stock options even when they are underwater. And for employees who receive new options, there is no guarantee their prospects will improve.
Electronics retailer hhgregg Inc. Terms often change along the way, as an improving or declining stock price can affect the number of eligible options and the new strike price. An earlier version of this article misstated the name of the firm.
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Please try again later. Stock-option exchanges surged in popularity during market busts, when many options became underwater. Subscribe Now Sign In. BROWSER UPDATE To gain access to the full experience, please upgrade your browser: Chrome Safari Firefox Internet Explorer Note: Do not show again.
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Options backdating - Wikipedia
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Maxx Is Defying the Retail Slump. AMD Launches Fight Against Intel in Lucrative Server-Chip Market. Tesla Replaces Chief of Self-Driving Software. Save Article Sign In to Save Subscribe to WSJ. Retailer hhgregg repriced options with a three-year vesting schedule for 58 employees in SHOW COMMENTS HIDE COMMENTS 7.
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Commenting on WSJ Close. Click to agree to the terms and continue Confirm. The admin system is experiencing difficulties. Close Stock-option exchanges are making a bit of a comeback Stock-option exchanges surged in popularity during market busts, when many options became underwater From. Thank you This article has been sent to. Wall Street Journal Europe Edition U. Subscribe Now Sign In WSJ Membership Benefits Download WSJ Apps Customer Center Legal Policies. Dow Jones Products Barron's BigCharts DJX Dow Jones Newswires Factiva Financial News Mansion Global MarketWatch Private Markets realtor.
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