Repricing Underwater Stock Options - a guide from White and Case

Repricing Underwater Stock Options

With
the recent market downturn, many stock options are underwater — that
is, their exercise prices are higher than the market price of the
underlying stock. To continue to motivate and retain employees, many
companies may consider repricing the options by lowering their exercise
price. The time to starting thinking about this is now — especially if
shareholder consent is needed. Companies need to take into account the
significant regulatory, accounting and market practice developments
that have occurred since the last repricing wave in 2001 and 2002. Read
here for the details on taking the right steps.

Click here for the full Alert (PDF)\

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