The ethics of repricing and backdating employee stock options


09-Dec-2016 18:29

"This month is the ten-year anniversary of the "quant crisis" or "quant quake" - that one week period in August 2007 when quantitative equity strategies like factor investing and statistical arbitrage suffered very large losses and then, in the next few weeks, made an almost full recovery.

Although the particulars vary from one form of stock compensation to another, the basic idea behind most forms is to provide workers with the means to buy company stock which they can then sell.TUTORIAL: Stock Picking Strategies The debate about how to account for corporate stock options given to employees and executives has been argued in the media, company boardrooms and even in the U. (To learn more, see .) Investors need to learn how to identify which companies will be most affected - not only in the form of short-term earnings revisions, or GAAP versus pro forma earnings - but also by long-term changes to compensation methods and the effects the resolution will have on many firms' long-term strategies for attracting talent and motivating employees.