Contract Renegotiation and the Optimality of Resetting Executive Stock Options
|Authors:||Acharya, Viral V.|
Sundaram, Rangarajan K.
|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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