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Re: lafont post# 41693

Tuesday, 09/15/2009 2:08:06 PM

Tuesday, September 15, 2009 2:08:06 PM

Post# of 347009
Of course there is a cost to management of unexercised options.

Then why do they let them expire?

If the share price tanks, they lose this compensation.

No they don't. They just lower their exercise price. By lowering the price they lose nothing.

Options and compensation are supposed to be based on performance. A major measurement of this performance is based on increasing shareholder value.
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