Emerging Enterprise Center Blog - Commentary and Analysis For Entrepreneurs and Startups

Here is a link to an article about option repricing. Intel and other big public tech companies are doing it. Options are supposed to provide employees with an incentive to improve results and thereby increase stock value. In a sense, they align the employee interests with the stockholder interests. On the one hand, underwater option provide little (maybe no) incentive to employees. On the other hand, if you reprice downward when there is a market decline, you protect employees from the downside risk in a way that you don’t (and can’t) protect common stockholders. You can pick your poison.... More