Altering the terms of executive stock options

被引：92

作者：

Brenner, M ^{[1
]}

Sundaram, RK ^{[1
]}

Yermack, D ^{[1
]}

机构：

[1] NYU, Stern Sch Business, Dept Finance, New York, NY 10003 USA

来源：

JOURNAL OF FINANCIAL ECONOMICS | 2000年 / 57卷 / 01期

关键词：

executive stock options; executive compensation; resetting; repricing; valuation;

D O I：

10.1016/S0304-405X(00)00052-0

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine the practice of resetting the terms of previously-issued executive stock options. We identify properties of reset options, develop a model for valuing resettable options, and characterize the firms that have reset options. We find the vast majority of options are reset at-the-money, resulting, on average, in the strike price dropping 40%, Our valuation model suggests that resetting has only a small impact on the ex-ante value of an option award, but the ex-post gain can be substantial. Finally, we find resetting has a strong negative relation with firm performance even after correcting for industry performance. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classification: G12; G13; G32.

引用

页码：103 / 128

页数：26

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