Surviving Stock Option Repricing

Law360, New York (February 19, 2009, 12:00 AM EST) -- Another casualty of the recent economic crisis has been the value of stock options issued to employees as incentive compensation.

As stock prices plunge, many employees who hold stock options are finding their options are “underwater,” which means the exercise price of the options exceeds the current market price of the underlying shares.

Many of these options are significantly underwater and may not regain value for years in light of the current economic environment.

In many companies — particularly high-growth companies — equity compensation is critical...
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