Which One of the Following Is an Argument Against Repricing

question 61

Multiple Choice

Which one of the following is an argument against repricing employee stock options?

• A) ESO's are originally issued with positive intrinsic value so there's no reason to reprice.
• B) Employees have more incentive when options are "under-water".
• C) Repricing is a reward for failure.
• D) It is unnecessary to reprice as ESOs expire quickly.
• E) Repricing affects the market price of the firm's stock for all shareholders.

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Definitions:

Poorest Quintile

The segment of the population that falls into the bottom 20% in terms of income or wealth, often used in statistical analyses of economic inequality.

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The process of determining or influencing the traits of an organism by modifying its genetic material.

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The process of growth and maturation of a fetus inside the uterus from conception to birth.

Increased Inequality

A situation where the economic gap between individuals or groups within a society widens, leading to a larger disparity in wealth and income.