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 is 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.

Question

Quizplus · Accepted Answer

Repricing is often criticized as a reward for poor performance because it can allow employees to benefit from a lower strike price without having to improve the company's performance.

Which One of the Following Is an Argument Against Repricing