Biotech Valuation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Valuation

CRSP 53.52

+0.4%

Nov 28 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Miljenko Zuanic who wrote (3092)	3/15/2001 8:42:56 AM
From: Biomaven	Read Replies (3) of 52153

Miljenko, In many cases out off money options are re-priced Not any more, they are not. The accounting rules changed last year (with a strong push from the SEC), and any repricing now produces draconian accounting treatment. (You get variable accounting that directly hits the bottom-line in an unpredictable fashion driven by the stock price each quarter until the options are exercised. The only companies that are repricing now are the truly desperate dot.coms, where nobody cares much about earnings anyway. The only way around the new repricing rules is to cancel employee grants, wait six months without awarding these employees any options at all, and then re-award. So basically there has to be a six-month window where the employee is "at-risk" of not sharing in a stock price increase. The other way options effectively get repriced is by labor mobility - if two employees from different companies swap jobs, they both effectively get their options repriced. Peter

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next