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Underwater Option
(redirected from Underwater Options)

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Underwater Option
An out-of-the-money stock option. That is, it describes an option in which the underlying asset is a stock that is currently trading for less than the strike price of the option. For example, an executive at a publicly-traded company may have stock options in which he/she may buy the stock of his/her own company for $80 per share. If the stock is currently trading at $60 per share, the options are worthless.
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Some companies offered new options at lower exercise prices in exchange for underwater options while others repriced existing stock options.
Make CEOs earn their pay: here is how compensation committee members ... by Rappaport, Alfred; Hodgson, Paul / Directors & Boards
Underwater options represent an inefficient allocation of resources that arguably serve the interests of neither party--as companies must continue to recognize accounting charges for awards that provide no value to the company or its employees.
Rescuing drowning stock-option programs: despite congressional and ... by Ma, Cindy W. / Financial Executive
Reinforcing the global scope of our time-tested solutions, the refinements we've introduced are helping a new generation of clients move underwater options programs to higher ground," said Samir Pandiri, chief executive officer of BNY Mellon Shareowner Services.
BNY Mellon Shareowner Services Introduces Enhancements to Options ... by PR Newswire
 
 
 
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