SAN DIEGO—Leap Wireless International Inc.’s board of directors approved a program offering a voluntary stock option exchange or supplemental option grant for its employees.
Under the program, employees holding options to purchase Leap common stock will be given the opportunity to exchange unexercised vested and unvested stock options with exercise prices above $35 per share for new options to purchase an equal number of shares of Leap common stock. Leap said the exercise price of the new options will equal the last reported trading price of Leap common stock on the new grant date.
Employees who elect to not participate in the option exchange will be given the opportunity to retain their existing options and receive a supplemental grant of a smaller number of options to acquire Leap common stock next month.
“This program balances our need to address the impact of the current market environment on our employees and our obligation to be responsible to all our stockholders,” explained Harvey White, chairman and chief executive officer of Leap.
