外文翻译股票期权重新定价正面我赢反面你输.docx

外文翻译股票期权重新定价正面我赢反面你输.docx

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外文翻译股票期权重新定价正面我赢反面你输

中文3900字

外文翻译

原文：

StockOptionRepricing:

HeadsIWin,TailsYouLose

Introduction

Inmostpubliclytradedcompanies,stockoptionsareabigpartofexecutivecompensation,favoredasawaytobindthefinancialinterestsofexecutiveswithshareholders.Althoughtheexercisepriceoftheseoptionsisfixedatthetimeofgrant,somecompaniesrepricestockoptionswhenstockpricedropsbelowtheexerciseprice.Therecentdownturninstockmarketshaspromptedmanycompaniestojumpontherepricingbandwagon（BusinessWeek,December11,2000）.Repricingoccursintwoways:

（1）eithertheexercisepriceislowered,or

（2）theexistingoptionsarecancelledandfreshoptionswithalowerexercisepriceareissued.

Criticsopposerepricingbecausemanagersstandtogainwhetherstockpricegoesupordown.Thisunderminestheincentiveeffectsofstockoptionsbyeliminatingthefinancialpunishmenttoexecutiveswhosemismanagementperhapsledtostockpricedeclineinthefirstplace.Theultimateironyisthatrepricingincreasesmanagerialcompensationwhenmanagersoughttobefiredforpoorperformance.

Institutionalinvestorsviewrepricingasasymptomofmanagerialentrenchmentcausedbyineffectivecorporategovernanceandroutinelyusetheirvotingpowertoblockrepricingproposals.Theyareopposedtorepricingbecauseeachnewsharegrantedtoemployeesdilutesthecontrolandreturnsofexistingstockholders.

Boardofdirectorsofrepricingfirmsdefendthepracticebyarguingthatoptionsfarout-of-moneyaredevoidofanymotivationalpower,andrepricingcanrestoremanagerialincentives.Anotherexplanation,prevalentinSiliconValley,isthatrepricingisnecessarytoretaintalentedemployeeswhowouldbeotherwiseluredbyrivalfirms.Thesefirmsgrantemployeesstockoptionstoconservecashandviewrepricingasnecessarytopreservetheirmostvaluableasset–humancapital.Animplicitassumptionisthatretainingtheseexecutivesisessentialtobusinesssurvivalandimprovedfirmperformance.

Suggestions

Theoreticalliteraturesuggeststhatrepricingcanbeaneffectiveantidotetotheproblemsoflowemployeemoraleandhighturnoverespeciallyinfirmswhereintellectualcapitalisthemostimportantasset.However,duetoweaknessesincorporategovernanceanddysfunctionalincentivesunderthecurrentregulatoryregime,repricinghaslostitspurposeandresultedinundesirableoutcomes.Tomitigatetheside-effectsofrepricing,weofferthefollowingsuggestions:

（1）educatepublicaboutthetrueeconomiccostsofstockoptions,

（2）promoteregulatorychanges,（3）strengthencorporategovernance,and（4）reviseCEOcompensationplans.

1.Educatepublicaboutthetrueeconomiccostsofstockoptions

Manycorporateboardsperceiverepricingasalowcostoptionbecauserepricingdoesnotrequirecompaniestorecordanaccountingchargeandthereisnocashoutflow.Theonlycostisequitydilutionwhenoptionsareexercised.Thedilutioneffectcanbeeasilyoffsetbysharerepurchases.Itislittlewonderthattheboardstendtorepricewhenstockpricesfall.

Somepoliticianshaverepeatedlymadestatementsthatemployeestockoptionshavenovalueifthestrikepriceisequaltothemarketpriceonthegrantdate.Theirstatementsreflecteitheratremendouslackofknowledgeaboutaccountingorconsiderableintenttodeceive.Yet,theclaimthatstockoptionshavenovalueatthegrantdateseemstobewidelyheldbothwithinthebusinesscommunityandthegeneralpublic.

Exanteeconomiccostofanoptionistheamountofmoneyanoutsideinvestorwouldpayifthecompanydecidestosellsuchoptionsratherthangivingthemtoexecutives.Exposteconomiccostoftheoptionisthedifferencebetweenstrikepriceandthemarketpriceonthedateoptionsareexercised.Accountingandfinanceacademicscanplayausefulroleineducatingexecutives,directors,politicians,andthegeneralpublicaboutthetrueeconomiccostsofoptions.Theycanhelpcorporateboards,humanresourcemanagers,andexecutivesunderstandhowoptionvaluationformulassuchasBlack-ScholesorBinomialmodelsworksothatthoseinvolvedindesigningthecompensationmixrealizethatbothstockoptiongrantsandrepricingexistingoptionsarecostlytothecompany.Anincreaseintheawarenessaboutthetrueeconomiccostsofoptionswillalsoexertpressureonpolicymakerstochangetheaccountingortaxregulationstomakesuchcostsexplicitandensurethatrepricingfirmsbearthesecosts.

2.Promoteregulatorychanges

Twomostcriticalregulatoryreformsneededare

（1）toensurethatthecostofoptionsisrecognizedexplicitlyinthefinancialstatements,and

（2）thatthereissymmetrybetweenaccountingandtaxtreatments.Financialeconomistsagreethatstockoptionsarecostly.InarecenttestimonytoU.S.SenateFinanceCommittee,FederalRes