Check out the new ECE Semi-Monthly Poll

Posted by Dan / on 03/02/2009 / 5 Comments

As the ECE membership continues to grow (at 590 as of today), we are trying to add features that make the site more useful for members.  We have many ideas that we will be rolling out during 2009.

Our newest feature is a semi-monthly poll.  Twice each month we will post a single question on the site.  This months question is:

"Has your company considered any corrections, repricings, cash-outs or exchanges for underwater stock options?"

These new pools are anonymous and will give all of us a feel for how others are dealing with important or interesting issues.  If you have a good idea for a poll question that would be non-"salesy" and appeal to a majority of members, please send it to us via email (along with possible answers).  We will do our best to get it posted at the next open date.

 

Invite 5

Lastly, we know with the economy down it has become difficult for many people to maintain memberships in all relevant professional organizations.  Please Invite 5 of your colleagues to join the ECE this week. We will continue to provide the most up-to-date information possible and make sure you know about industry events (including free events and those where membership to one of the industry's several professional organization can help reduce costs).

 

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Comments

  • Dan says:

    Please try out the new ECE Semi-Monthly Poll and let me know what you think about it.

    March 3, 2009 at 9:25 AM | Permalink

  • Jill says:

    We have no plans for our underwater stock options other than to let them expire, and have the shares go back into the plan for future grants.

    March 11, 2009 at 7:11 AM | Permalink

  • Tami says:

    We thoroughly evaluated repricings, cash-outs and exchanges for underwater stock options and determined that based on the number of shares need to do an exchange, there was no benefit to the exchange when it comes to significantly reducing overhang. This is partially because of RiskMetrics 6% cap on on equity available for granting and for awards outstanding. We also looked at cashing out options and determined that even that would not reduce our overhang enough for us to get enough new shares approved to make the programs effective tools for compensation. Afterall, we use to grant equity as part of total comp, but with a stock price as low as $1-3's, we cant get enough shares approved to make awards especially to the broader base of employees. At this point we would have to give sr. management 10% of the company in order to award equity in line with our previous compensation guideline.

    March 11, 2009 at 7:51 AM | Permalink

  • John says:

    Only one of my clients has even considered a repricing. This was back in November and they ultimately decided not to pursue it when they understood what it would take to complete one. The rest are maintaining the status quo-at least for now.

    March 11, 2009 at 11:36 AM | Permalink

  • Anca says:

    We are in the final stages of completing an exchange for cash.

    March 11, 2009 at 2:36 PM | Permalink

 

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