Google disclosed on Tuesday that its employees exchanged about 93% of "underwater" stock options for new options with a lower exercise price.
According to a regulatory filing,
15,642 Google employees participated in the program, which allowed employees to swap stock options with exercise prices above the stock's current market price for new options with an exercise price of
$308.57--Google's Friday closing price.
Google's stock has fallen 49% from its 52-week high of $602.45. The company has said resetting the price of stock options is a way to motivate and retain
employees. Google previously estimated it would take a $400 million charge to account for the exchange, assuming the new options were priced at $350 and that 100% of eligible options were
exchanged.--Tanya Irwin