May 23, 2022
Option Repricings: New 18-Page Guide
As a result of recent stock market volatility combined with a tight labor market, some companies are dusting off option repricing playbooks. For good reason, a lot of us are rusty on how this works (while others of us might have some PTSD from the last time that repricings were widely used). White & Case compiled this 18-page guide on the topic, which covers:
1. Structuring Repricings
2. Shareholder Approval Requirements
3. Tender Offer Rules
4. Other Considerations (Tax, Accounting, Section 16, etc.)
5. Foreign Private Issuers
6. Alternative Strategies
There are a lot of traps for the unwary here – so make sure to check out the memo and the other resources in the “Underwater Options” section of our “Stock Options” Practice Area. Also, be on the lookout for our next issue of The Corporate Executive – Dave is planning to analyze the impact of market volatility on executive pay from a bunch of different angles. If you aren’t already receiving that newsletter, call (800) 737-1271 or email sales@ccrcorp.com.
– Liz Dunshee