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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: jt101 who wrote (226)	8/19/2002 7:49:21 AM
From: rkral	Read Replies (2) \| Respond to of 786

jt101, re Almost all tech companies have repriced stock options I'm not surprised it is occurring .. but I also haven't seen any evidence of it yet. Would you please share some links to re-pricing activity. Thanks. Ron

To: jt101 who wrote (226)	8/19/2002 8:33:56 AM
From: Exacctnt	Read Replies (2) \| Respond to of 786

<<<Almost all tech companies have repriced stock options, without any shame. >>> Be careful what you say. The word repriced means companies changed the grant price of the existing option. Any repricing of options is to be expensed on the income statement according to current accounting rules. If you mean companies have issued additional grants at current prices that are lower than the original grants in order to make up for deeply out-of-the-money options then those options are not expensed according to current accounting rules. I consider additional grants as an abusive policy. After all, one of the original premises of ESOP's was that it contains an element of risk for the employee. I know that MSFT freely admitted that it granted additional shares to all of its employees in 2000. I also have seen some CEO's getting 2 or even 3 option grants within the same year because of plummeting stock prices.