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|Title: ||Contract Renegotiation and the Optimality of Resetting Executive Stock Options|
|Authors: ||Acharya, Viral V.|
Sundaram, Rangarajan K.
|Issue Date: ||9-Dec-1998 |
|Series/Report no.: ||FIN-98-088|
|Abstract: ||Recent empirical work has documented the tendency of corporations to
reset strike prices on previously-awarded executive stock option grants
when declining stock prices have pushed these options out-of-the-money.
This practice has been criticized as counter-productive since it weakens
incentives present in the original award.|
|Appears in Collections:||Finance Working Papers|
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