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If the shares of a company dropped, executives simply decided not to exercise their options.
Most companies explain to option recipients that they face a liability when they exercise their options.
When they exercise their options, their company receives a tax deduction equal to the gain.
Typical options grants require that employees who leave the company exercise their options within 90 days.
They encourage managers to exercise their options by giving them a new one every time they turn one in.
The brokerage firm is paid to help employees exercise their options, and it profits when employees bring it additional business.
Similar(7)
National League PITTSBURGH -- Declined to exercise their option on 2B Pokey Reese.
Doubtless, many of my generation will exercise their option.
SAN DIEGO PADRES - Declined to exercise their option on OF Tony Gwynn.
CINCINNATI REDS--Declined to exercise their option on the contract of RHP Ramon Ortiz.
Declined to exercise their option on F Alex Korolyuk, making him a restricted free agent.
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