Stock option plan to the shareholders

Assignment Help Business Management

Reference no: EM132647223

At the recent shareholder meeting, the CEO of a small bank proposed a plan to offer each of its employees 250 incentive options for Class A common stock. The key provisions of the plan are that employees must exercise the options between January 2014 and December 2019, and if an employee terminates his or her employment with the bank (or is terminated), the options are no longer exercisable. One shareholder vehemently objected to the plan, claiming that such a move would dilute the value of the outstanding shares. As CEO, how would you defend the stock option plan to the shareholders?

Reference no: EM132647223

Questions Cloud

Describe the market for telephony services : Describe the market for telephony services prior to the enactment of the 1996 Telecommunication Act in Germany.

Compute the break-even point in Ringgit Malaysia : Compute the break-even point in Ringgit Malaysia (RM) for the year 2020 by using mathematical equation. (Show all workings)

Find What will current yield and yield to maturity be : Assume that Annie buys the bond at its current price, What will her current yield and yield to maturity (YTM) be, assuming annual interest?

Examine the role of a health care manager : This assignment will allow you to examine the role of a health care manager regarding ethical issues and decision-making. It will also provide you with an.

Stock option plan to the shareholders : The CEO of a small bank proposed a plan to offer each of its employees 250 incentive options. How would you defend the stock option plan to the shareholders?

How much of a gain or loss will experience in the value : Value and holds it for exactly 3 years, at which time the required return is 7.0%, how much of a gain or loss will she experience in the value of the bond

Discuss impacts of general environment on market : Introduce the company and discuss the impacts of general environment on the market and the industry of the company.

Does a liability for cleanup exist : Environmental remediation after a chemical spill has occurred. No existing law or statute has been broken. Does a liability for cleanup exist?

Does a liability for replanting exist : As part of its contract with the government, a logging company must replant one tree for each tree it cuts. Does a liability for replanting exist?

User Account

All Pages