S Cube Update – Repricing of employee’s options as a tool for dealing with the COVID-19 crisis.

During these challenging times, we’re experiencing due to the spread of COVID-19, that only a handful of companies have bettered their status or have been completely unaffected by it. As this crisis prolongs, its impact is becoming more and more significant and unfortunately, most companies will be badly affected, which will be reflected in their value.

As companies’ values plummet, stock markets around the world drop, and return to our normal routines are still distant, many ask if there’s any way to use this crisis for our own good? The answer is positive!

Due to the change in the value of the company, it’s possible to update the valuation for a variety of needs, among them is the Re-pricing of options that have been granted to employees.

Repricing employee’s options is a great tool that enables the employer to benefit its employees, at a minimal cost. These times are stressful and uncertain to many, especially for employees – some had to take unpaid leave or deal with a salary cut back. Re-pricing employee’s options allow the employer to fix the value decrease of the options and consequently strengthen the employees’ identity with the company and its goals and retain them for the long run.

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