From the e-wallet, customers can then monitor their balance and access online reload options via online banking and debit or credit cards.
An offline reload option is also available via the use of a soft pin.
Loewenstein, 2003, "Employee Reload Options
: Pricing, Hedging, and Optimal Exercise", Review of Financial Studies, 16:145-171
Further, some will question extending "fixed award accounting" to reload options
granted to employees.
* Reload options
: These have become increasingly common, providing a grant of a new option, consistent with the remaining term of the original option, for the number of remaining shares used to exercise a grant.
Some view reload options as similar to that issue and therefore advocate variable plan accounting.
In a reload option, the minimum award of 1,000 options from the above example is established, but the ultimate number of options is unknown because of two variable factors: (a) the market price at the date of exercise and (b) whether the employee will elect a stock-for-stock exercise, cash-for-stock exercise or a combination of both.
This result occurs because the employer obtains a treasury share for each reload option.
Meredith: But the reload options
that you're talking about--in terms of taking the old options and granting new ones at a reload price--represent 3 or 4 percent of corporate practice today.