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Nvidia To Convert Employee Stock Options Into Shares

In an effort to retain and motivate its staff, Nvidia announced that it will let employees trade stock options for company stock, for which the company will take a charge of up to $66 million in the current fiscal quarter.

Game Developer, Staff

September 30, 2002

1 Min Read

The arrangement lets employees exchange stock options that have an exercise price equal to or greater than $27.00 per share for fully vested shares of the company's common stock. For each stock option tendered, an employee will receive common stock with a value equal to the number of shares underlying the stock option, multiplied by $3.20. Nvidia shares are currently trading near a 52-week low at about $8.65 each, and presumably most options held by Nvidia employees are now deep underwater. If all eligible employees accept the offer, approximately 20.6 million options under the offering will be cancelled and approximately 4.8 million shares of common stock will be issued.

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