share option


Book Reviewer
need ball park advice please .

I was given 78,500 share option as a bonus from a Spanish owned company. We were based in England .

I was given the shares in 1999, but the uk firm made me redundant in 2000'2001.

As I was made redundant do you think that I am entitled to take up my option on these shares ?
Just clearing out old papers etc .
I would have thought so yes, as I imagine they were essentially given to you as part of payment? Probably worth checking what they are now worth though with the Spanish econmy being as it is!
It will depend on the terms of your redundancy as there may be a clause in the original grant specifying the terms under which they can vest. They may require that you still be with the company when exercising them and/or that you remain with the company for a minimum stated period (usually 1-3 years) in order for them to become exercisable.

In addition options have an expiry date, well traded ones do anyway, again the terms will specify this, in which case, given their age they may well have expired and will, therefore, be valueless (options, unlike futures, do not have to be exercised at any time, hence the name however they do have a finite life).

Finally if, in light of all of the above, you find that the options are still valid (unlikely I think) then they will only have any value if the excercise price is below the current share price, otherwise they are, effectively, valueless.

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