Can my employer reduce my stock options?

January 18, 2006

Date:   Mon, 19 Dec 2005
From:   Denny


I was granted stock options upon joining my current company. One year later they are changing my position within the company. The CEO is now telling me they have to lower the amount of options provided to me when I joined. Can they do this? I see nothing in my option paperwork that says they can lower the amount at will.



Date:   Mon, 09 Jan 2006

Hello Denny,

An option grant is a contract that can’t be easily changed without the consent of both parties. There may be some additional information in your situation that you haven’t told me, so I suggest that you get a lawyer and ask for a better explanation for this adjustment.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options – Executive Tax and Financial Planning Strategies.

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