The Re-Emergence Of Stock Option Repricing

Law360, New York (February 10, 2009, 12:00 AM EST) -- As the equities markets continue to deteriorate, companies are taking proactive measures to put some value back into management and employee stock options made worthless by the recent declines in their share prices.

These “underwater options” are afflicted with an exercise price that is, in many cases, vastly in excess of the underlying stock’s current fair market value. One potentially effective solution to this problem is to reprice the options by lowering the exercise price.

However, the rules governing option repricing have changed since the last...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.