Repricing Stock Options During Market Volatility


As economic volatility and looming recession concerns threaten to drive down private market valuations, companies may consider repricing underwater stock options to preserve the incentive value of their equity.

Download this guide to help inform yourself and your clients on the benefits, considerations and mechanics of conducting a stock option repricing, including:

  • What underwater are stock options
  • What might drive a lower 409A valuation
  • Approaches to implement a stock option repricing
  • Waiting to hold off on reporting

 

Disclaimer:
Morgan Stanley at Work and Shareworks services are provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, all wholly owned subsidiaries of Morgan Stanley. Morgan Stanley and its affiliates do not provide legal or tax advice.
© 2022 Solium Capital ULC and its affiliates (“Shareworks”).  All rights reserved.  Shareworks, Shareworks Global Intelligence and all product marks and logos are trademarks of Shareworks.  THIS INFORMATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE.  You should always consult with and rely on your own legal and/or tax advisor(s) as Shareworks does not provide legal or tax advice and the information is not tailored to the specific situations of your company or your employees.  The information is sourced from third parties, may not be current and is subject to change without notice.  Shareworks makes no representations or warranties concerning the accuracy, completeness or timeliness of the information and is not implying an affiliation, sponsorship or endorsement with/of any third parties or views expressed by such parties.  Any views expressed in the information are solely those of the third-party source.  Shareworks shall have no liability arising out of, or in connection with, the information, including any loss caused by use of, or reliance on, the information.  All information made available by Shareworks is subject to the terms of the written agreement entered into between Shareworks and your company.

CRC 4904928 (8/22)



Request Free!