Google’s move to reprice underwater employee stock options earlier this year couldn’t have come at a better time.
After remarking yesterday that Google shares traded above $500 for the first time in more than a year, we went back later to see where, during Google shares’ march upward, the company let its employees trade in their underwater options.
It was March 10, highlighted in red on this updated chart. Almost 16,000 Google employees traded in more than 6 million options with strike prices above $500 for new ones priced at $308.57.
Turns out, Google didn’t sit around that price for long; shares closed yesterday at $499.06.
That’s a 62% gain on paper. But Googlers accepted longer vesting schedules for those new options, so any gains are theoretical.