What is repetition?

Repression is a possibility, usually offered to managers and upper level management, which allows people to exchange old stocks for newer and more valuable options when the value of the shares falls. The purpose of the overlap is to create motivation to remain loyal to society, even if the shares values ​​decrease. Companies must report a transaction together with other financial publication and is considered to be an employee benefit. This practice is sometimes criticized as a remuneration for executives of a failed company because they acquire valuable stock options when the value of the company falls. When the value of the company drops, it is said that these options are out of money, because the price offered in the option is higher than the current market value of the company's shares. From the money, employee stock options are effectively worthless, because there would be no reason to apply the possibility when shares can be purchased cheaper in the open market.

When this situation occurs, the company can offer repetitions. Employees can exchange their money options for new options stated that they are for money, appreciate in accordance with the current value of the company. These options are more value and are more valuable for employees. Repression is usually offered to a higher level manager to maintain them loyal to society during a rocky financial period, which gives them a reason to work for the company instead of looking for employment elsewhere.

6 Usually there is no reason to refuse to repetition because it allows people to trade worthless stock options for more valuable. Once the exchange is processed, the company reports it and may also be required to report it as a form of compensation because they have received something valuable in the transaction. Accountants can provide more information on how to manage reports on taxes and other financial information.

critics of opportunities in the area of ​​repetition claims that uThey can people at the forefront of unsuccessful society to eliminate more value, and can serve as a reward for allowing the value of society to decline. People have dared to replace their stock options, but banking to increase the assets of the company, which will make their possibilities more valuable by allowing them to buy shares at a low price and sell them for much higher. Maintaining these options is an incentive to improve the performance of society and generates more profits in the future.

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