Repricing


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Repricing

To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices.

Repricing

The act of a manager or other high level employee exchanging an out-of-the-money stock option in the company for an at-the-money stock option. Companies issue new at-the-money options and make the exchanges in order to reward the employee and/or to provide an incentive for the employee to continue to perform well even when the company's stock price has declined.

repricing

The exchanging of newly issued incentive stock options priced at the current market price for previously granted options that are out-of-the-money. Repricing rewards managers of companies with stock prices that have declined.
References in periodicals archive ?
OneRoof Energy" or the "Company") (TSXV:ON) today announced that its board of directors approved the repricing of all outstanding stock options previously granted pursuant to the Company's stock option plan.
Category 2: 10 years duration - frequency of repricing 5 years - fixed rate option - Amount: 50,000.
Dubai: Airport retailer Dubai Duty Free (DDF) said on Monday it has successfully completed the repricing of its $1.
The state-controlled retailer launched the repricing exercise last month, one of a string of UAE companies to cut their borrowing costs in recent months by refinancing loans with cash-flush local banks.
NYSE: ECOM) said it recently introduced smarter repricing with its new Repricer with Pricewatch feature.
As part of the repricing exercise, margins will be reduced by 100 bps on the dirham-denominated tranche and by 75 bps on the US dollar tranche, the sources said.
The worst-case scenario is a merger where the credit union neither gets the information regarding past repricing practices from the merged-in institution (and therefore cannot track repriced accounts) nor does it actively review and reprice the acquired portfolio within six months of merger.
Travelport, the business services provider to the global travel industry, has announces that Emirates Airline has deployed Travelport Rapid Reprice technology on its website, giving online travel buyers all-new ticket repricing capabilities.
However, under Notice 2008-113, the repriced options will be treated as satisfying the requirements of section 409A only if (1) the exercise price was erroneously set below the fair market value of the stock on the date of grant and (2) the repricing occurs before the employee exercises the stock right and not later than the last day of the employee's tax year in which the employer granted the stock options, or if the employee was not an insider under section 16 of the Securities Exchange Act of 1934 at any time during the year the options were granted, not later than the last day of the employee's tax year immediately following the employee's tax year in which the employer granted the stock option.
NS) has started repricing deposits from about 12 percent to about six percent as part of a strategy to reprice its high-cost deposits and improve its profit margins, DNA Money has reported, citing Rathnakar Hegde, executive director at the bank.
This practice of repricing of employee stock options is controversial.
Midtown repricing will be completed before year end.