Download or read book The Effect of Employee and CEO Participation on the Success of Six-and-One Stock Option Exchanges written by Alex Fayman and published by . This book was released on 2008 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Firms can reprice employee stock options to realign performance and retention incentives when stock price declines cause options to have insignificant expected values. Six-and-one option exchanges allow firms to avoid recognizing compensation expenses when repricing options, but appear unable to improve firm performance and employee retention. Employee turnover is higher during and after exchanges when employee participation in exchanges is low. Stock returns are negative prior to exchanges, especially when CEOs do not participate, yet no significant improvement is observed after. Finally, accounting performance is lower both during and after option exchanges when CEOs do not participate.