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The other side to stock options! |
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Sep 12, 2006 at 07:17 PM |
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With over 100 US companies under investigation over executive stock option grants, many with the semiconductor and ‘tech' sector another side to stock option problems has been raised with respect to consistently under-performing companies and the value they hold for employees that are given stock as part of salary package.
A story at globes online in Israel, notes that loss making semiconductor foundry, Tower Semiconductor has offered employees a re-pricing of stock options granted as the stock price of the company has fallen well below the exercise price, making them almost worthless. It is a bit of a ‘catch 22' situation for many Tower employees but at least the company is trying to correct the problem as far as they can. Stock option granting has been cited as key factor in retaining and attracting highly skilled workers within the semiconductor industry and is in common practice. When a company struggles for many years to be profitable stock options can lose their attraction. The full story can be read here;
(http://www.globes.co.il/serveen/globes/DocView.asp?did=1000131811&fid=1725)
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