Insiders Get Do-Overs

from the not-really-fair,-is-it? dept

A good article in the Red Herring complaining about companies repricing stock options and other questionable stock practices with its executives. I've always complained about the concept of repricing options. I understand why companies do it, but the whole point of stock options is to incentivize employees to help make the stock go up in value. If the company is just going to reprice it, then where's the incentive? More importantly, as the article points out, the regular investors who bought the stock out in the market don't have any right to reprice their stock purchases. It's as if insiders get to call a "do over" and get a better deal.

1 Comments | Leave a Comment..