Mitigating the Pain of Equity Compensation in a Down Market
Posted: 21 Nov 2001
Abstract
The dramatic decrease in equity values since early 2000 has left many executives and directors, and the companies with whom they work, facing the dilemma of how to deal with awards made under equity compensation programs at what appear now to be inflated values. In this report, Mooney explores ways to mitigate the adverse impact of these value reductions and the tax and other consequences of doing so. He concludes that there are several ways to deal with an unexpected price decline, but warns that time may be of the essence in achieving an effective solution to the problem.
JEL Classification: J33, H24, H25
Suggested Citation: Suggested Citation
Mooney, Michael E., Mitigating the Pain of Equity Compensation in a Down Market. Available at SSRN: https://ssrn.com/abstract=291653
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.