Equity Comp. Site Adds Underwater Options Calculator

August 24, 2009 (PLANSPONSOR.com) - A Brookline, Massachusetts-based company focused on stock compensation is now offering a new tool for those with underwater stock options.

A news release from myStockOptions.com said its new Break-Even Tool illustrates the stock-price increase and the appreciation that must occur for the value of each old grant to equal the value of each new grant. “The needed appreciation above the current stock price is usually so high that employees instantly understand the advantages of electing to exchange underwater options for new options at the current exercise price, or for restricted stock,” said Bruce Brumberg, editor in chief, in the news release.

According to the announcement, users are called on to enter four pieces of data:

  • The number of underwater stock options,
  • The exercise price for each grant,
  • Either the exchange ratio or the number of new options/restricted stock shares, and
  • The current stock price.

Employees can enter these numbers themselves, or companies can customize the tool to import the data automatically. Employees can also edit their tax rates to see the after-tax gains at the break-even point.

More information is available at 617-734-1979 or by e-mail at info@mystockoptions.com .