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.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Insiders Get Do-Overs”

Subscribe: RSS Leave a comment
1 Comment
Mark Baker (profile) says:


While mega-payoffs from options are the incentive, quite often there’s a reasonable level of expectation from options that all employees have. Executives in particular have, in recent years, forgone bonuses in lieu of options. So as long as these options aren’t being repriced to values above this happy-point, I have no problems with this practice.


Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...