Quiksilver is doing something nice for some of their employees according to tender offer papers filed yesterday (April 19, 2010) with the US Securities and Exchange Commission.
According to the documents, Quiksilver is now giving eligible employees and contractors the ability to trade in their underwater stock options for a fewer number stock options at what may be a reduced price. Those who have options with an “exercise price per share greater than $7.71” that were “granted prior to October 19, 2008 under the Company’s Amended and Restated 2000 Stock Incentive Plan” have until 5 PM Pacific Time on May 17, 2010 to decide if they’d like to trade their options in for fewer options at the stock’s price on May 18, 2010.
Here’s why the Quik decided on the changes:
We believe that an effective and competitive incentive program for our employees and consultants is imperative for the success of our business. We rely on our experienced and productive employees and consultants and their efforts to help us achieve our business objectives. At Quiksilver, stock options constitute a key component of our incentive and retention programs because we believe that equity compensation encourages employees and consultants to act like owners of the business, motivating them to work toward our success and rewarding their contributions by allowing them to benefit from increases in the value of our shares.
Options eligible for the trade cover an aggregate of 4,105,852 shares or $10 million worth. One upside is that for most employees (excluding some European workers) the new stock options have a five-year term, rather than the Quik’s regular 10-year term. Any eligible employees who’d rather have their stock option money sooner rather than later might find this deal extremely attractive, and may actually give them a reason to stick around a little longer.
[Link: SEC]
Great way to retain good talent.
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