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Business, 22.06.2021 19:00 meganwintergirl

A controversial practice with employee stock options is repricing. What happens is that a company experiences a stock price decrease, which leaves employee stock options far out of the money or underwater. In such cases, many companies have repriced or restruck the options, meaning that the company leaves the original terms of the option intact but lowers the strike price. Proponents of repricing argue that because the option is very unlikely to end in the money because of the stock price decline, the motivational force is lost. Opponents argue that repricing is in essence a reward for failure. How do you evaluate this argument

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