Repricing Options Cuts Broad Employee Turnover, But Not for Executives

A new study by Mary Ellen Carter at The Wharton School and Luann Lynch of the Darden School of Business titled "The Effect of Stock Option Repricing on Employee Turnover" finds that repricing executive options has no impact on turnover, while repricing options for non-executives in broad-based plans reduces turnover about 9% over what would have been expected. The study was based on 1998 repricings in high-tech and non-high tech companies. The study can be accessed through a Web search on the title.