But Phillips does have options at his new job, and recruiters say options are still a draw for workers. Tony Guzman of Saratoga is on his third try at getting rich from stock options. Several years ago, he signed on as the 40th employee of a start-up with options priced at a dime apiece. Now, although he appreciates the options he receives as a senior business systems analyst at a software company, his expectations are more realistic. Companies that want to mitigate the effects of employees' underwater options have several choices.
Companies can give workers more options at today's prices.
According to iQuantic's survey, more than 90 percent of the companies that have already taken action have issued supplemental grants. However, some companies might have to ask their shareholders for stock for the extra grants, which are usually in addition to any grants that company was planning to give during the year. And some companies issued these supplemental grants several months ago, then watched as their stock prices continued to decline. Canceling or repricing options. A change in corporate accounting rules means repricing now results in a charge to the company's earnings as well.