Microsoft To Buy Back "Underwater" Stock Options
Thursday October 16, 2003
Microsoft announced last July that it would buy stock options from its employees that currently have a strike price above the current trading price of Microsoft stock. Today Microsoft announced more details of this deal. It is a smart move on Microsoft's part and will help with employee retention.
In addition to the employee motivation and retention aspects of this move, this is another step in Microsoft's plan to issue restricted stock instead of using stock options as has been more popular in the high-tech industry. One can only hope other companies follow Microsoft's lead.
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