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- Title
Stock Options: Weighing the Impact of Bailouts.
- Authors
Muller, Jennifer S.; Blatnicky, Lucia
- Abstract
In this article the author reports on the results of a study conducted by Houlihan Lockey Howard & Zukin that examined how companies are dealing with the issues of stock options repricing in the wake of corporate scandals and reductions of equity prices. The author notes that these events have caused investors to lack tolerance for companies that chose to compensate employees in the face of significant stock losses. The author discusses four of the most common approaches that companies have used, as alternatives to repricing, to bail out failing options which include cancelling the options and replacing them six months and a day later, replacing options with restricted stock, shortening the period of time before the next option grant cycle and buying the options with cash.
- Subjects
STOCK options; STOCK prices; STOCK market bubbles; CORPORATE governance; FINANCIAL crises; ECONOMIC bubbles; STOCKHOLDERS equity; HOULIHAN Lokey Howard &; Zukin Inc.; STOCKHOLDERS -- Services for; SECURITIES industry laws; STOCKS (Finance); ACCOUNTING; FASB pronouncement : Statement 44; MANAGEMENT; ECONOMICS
- Publication
Financial Executive, 2004, Vol 20, Issue 1, p38
- ISSN
0895-4186
- Publication type
Article