EA revises employee stock options plan
EA has revised its plans for an employee incentive scheme offering an exchange of underwater stock options, raising the floor for eligible options in an effort to appease shareholders as well as employees.
EA has revised its plans for an employee incentive scheme offering an exchange of underwater stock options, raising the floor for eligible options in an effort to appease shareholders as well as employees.
The stock options exchange plan previously allowed for an exchange of options which carried an exercise price of 15 per cent or more above the average closing price of EA shares during the period.
The revised proposal raises the floor on eligible options by 10 per cent, meaning that only those employees who hold stock options with an exercise price of 25 per cent or above the average EA share price on the five days prior to the start of the exchange programme will be eligible to partake.
Having taken advice from investors and Institutional Shareholder Services, company spokesman Jeff Brown told The Street.com:
"People felt the floor needed to be slightly higher. We wanted this to be a win for employees and shareholders."
The company has further noted that it would call off the exchange program if the average price of the company's stock reached US$55 or greater over the five-day period. Shares in EA are currently trading at US$45.38.