CEO stock options drowning in red ink
With some large companies trading under $5 and many down 80% or more from their 52-week highs, it would make sense that stock options granted in the last two years would be worthless. It turns out that the problem is worse than most people would imagine.
According toThe Washington Post, which examined figures from an executive compensation firm, "As of late last year, nearly 99 percent of Fortune 500 chief executives held options with strike prices above the current stock price, Equilar said. Such options are 'under water'."
