E-mail animator IncrediMail Ltd. (Nasdaq:MAIL: TASE:MAIL) has announced that it will reprice options for five company officers. The company today published an invitation to shareholders for a general meeting on July 17 to ask their approval for the measure.
The options are held by Incredimail CEO and director Ofer Adler, who is the company's largest shareholder, president Yaron Adler, the company's second-largest shareholder chairwoman Tamar Gottlieb, and directors Yair Zadik and Gittit Guberman.
Companies whose share price has plummeted resulting in the stock options for managers going out of the money sometimes reprice, or change the exercise price, of the options to bring them back within the money. While legal and permissible, the measure is rarely welcomed by investors, especially in the aftermath of the Wall Street stock backdating scandals.
Incredimail wants to reprice the stock options for the five executive down to $3. On Monday, the share rose 3.5% on Nasdaq to $3.21, and is down 42% from its price of $5.48 on December 31, 2007. The company wants to reprice the exercise price of the options to around the market price.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2008
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