Option Repricing
Option repricing lets you lower the strike price on existing stock option grants, typically done when the current strike price is above fair market value. Cake's repricing tool lets you reprice across all grants in a pool in one action.
Note: Repricing can have tax and accounting implications for option holders. Consult your legal counsel and accountant before proceeding.
Before you start
You'll need:
A new (lower) strike price and the effective date for the repricing
Board consent documenting the repricing decision
Reprice options
Go to Plans → Options.
Click View pool on the option plan you want to reprice.
Select the grants you want to reprice.
Click Bulk actions and Reprice strike price from the bulk actions menu.
Confirm your selected offers and Continue to settings.
Enter:
New strike price: the updated price per option
Effective date: the date the repricing takes effect
Optionally attach the board consent document to the repricing event.
Click Apply changes.
Cake updates the strike price on all affected grants and logs a Repriced transaction in each grant's history.
Employee notifications
After repricing, employees will not be sent a notification regarding the updated grant details. You should communicate this to the recipient separately, or let them know to check their Cake portal to see the changes.
What Happens Next
Each affected grant shows the new (lower) strike price
A Repriced entry appears in each grant's transaction history
Employees see the updated strike price in their My Cake portal
