Akamai's stock price sharply lower with the NASDAQ in 2000, resulting in almost all employee options go underwater. Right to property and to maintain incentives largely destroyed, and morale plummets. Management is weighing the pros and cons of various alternative "solutions" to this problem (including changes in interest rates, the issuance of new additional grants, canceling underwater options and the issuance of delayed regrant, and makes a tender offer to exchange underwater options for fewer shares restricted stock). "Hide
by Brian J. Hall, Jonathan P. Lim, Houston Lane Source: HBS 28 pages. Publication Date: March 14, 2002. Prod. #: 902069-PDF-ENG
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