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 ?
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.
Anybody can reprice their loan by paying a 1 per cent of their outstanding as an upfront fee," managing director and chief financial officer of the bank, Diwakar Gupta told agencies.
When Emirates website customers need to change or cancel itineraries, Rapid Reprice select eliminates the need to conduct separate shopping requests to find more than one alternate low-fare itinerary.
Thus, Google employees kept the same number of options but with a much lower exercise price (approximately $300), As a result of this transaction, Google recognized an incremental compensation charge of $360 million in its February 12, 2010, 10-K filing, Although EA did not reprice its stock options one for one like Google, EA still expected to incur between $60 million and $80 million worth of compensation charges related to its stock option exchange program.
Global Banking News-2 December 2009-Oriental Bank of Commerce reprices high-cost deposits(C)2009 ENPublishing - http://www.
To investigate the reasons why firms reprice their options I address the following research questions: (i) is the poor stock price performance prior to repricing due to market (industry) or firm-specific factors; and (ii) are option repricings associated with greater agency problems that benefit employees at the expense of shareholders or do repricings realign employees' incentives with shareholders' interest.
Theoretic models argue that including an option to reprice may be optimal in some instances.
The Burbank entertainment company will now require shareholder approval to reprice stock options or stock appreciation rights.
Since CAI processes and reprices about 500,000 claims each year for a host of payors, this kind of help improves the bottom lines for payors.
Second, the Company will reprice outstanding out-of-the-money stock options held by them.
BANKING AND CREDIT NEWS-February 13, 2017-Black Knight Financial Services seeks to reprice USD 394m loan