Balancing act – Providing executive incentives in a low-stock-price environment

Description

Abstract: Stock options can be powerful tools for attracting, motivating and retaining employees — at least when stock prices are rising. But, as this article explores, depressed stock prices present challenges for public companies. It suggests several strategies, such as using financial modeling, for companies whose stock has lost significant value. A sidebar discusses nonequity incentives that might replace stock options.