Add Option Repricing Event

[JSv4]

What type of PR is this?

/kind feature

What this PR does / why we need it:

As discussed in #460, we need a way to reprice outstanding equity compensation (options). This adds a transaction to reprice specific options.

Which issue(s) this PR fixes:

Fixes #460

[MattCantor]

I apologize for my lack of familiarity with the schema, but does this repricing transaction create a new stock option, or does it merely adjust the exercise price of the existing stock option? A stock option repricing is treated as the grant of a new stock option for purposes of determining status as an ISO or NSO. So in some instances it is helpful for a repricing to be treated as a new grant.

[JSv4]

Let's draft a primitive for a multiple security transaction and discuss further on the next TWG.

[JSv4]

@MattCantor is going to put together an initial write-up of what goes into the NSO / ISO determinations and propose a way to handle ISO/NSO splits.

[JSv4]

@MattCantor is going to put together an initial write-up of what goes into the NSO / ISO determinations and propose a way to handle ISO/NSO splits.

Hey @MattCantor, any updates on the write-up here?

[jacobyavis]

TWG notes Sep 12 -- @JSv4 going to see if any more changes are needed to be able to merge this

[MattCantor]

@MattCantor is going to put together an initial write-up of what goes into the NSO / ISO determinations and propose a way to handle ISO/NSO splits.

Hey @MattCantor, any updates on the write-up here?

#504 (comment)

[ryansdwilson]

Can I suggest that we consider making this a re-issuance with one of the things you can change being price. Often when a repricing event occurs there are also material changes to the grant including its expiry provisions. Currently there is no way to capture this other than cancelling the grant and issuing a new one. If we did this as a re-issue (which is technically what a repricing is) we could enable the user to update any of the parameters of the option in the same way you can reissue stock. We could borrow from this pattern.

[JSv4]

Can I suggest that we consider making this a re-issuance with one of the things you can change being price. Often when a repricing event occurs there are also material changes to the grant including its expiry provisions. Currently there is no way to capture this other than cancelling the grant and issuing a new one. If we did this as a re-issue (which is technically what a repricing is) we could enable the user to update any of the parameters of the option in the same way you can reissue stock. We could borrow from this pattern.

Thanks @ryansdwilson, at least in the U.S., there are a couple ways to do this. You could technically amend the option agreement to change the exercise price, or you could cancel and re-issue with a newly priced option.

[JSv4]

@MattCantor is going to put together an initial write-up of what goes into the NSO / ISO determinations and propose a way to handle ISO/NSO splits.

Hey @MattCantor, any updates on the write-up here?

#504 (comment)

Hey @MattCantor, I think we decided we didn't need to make any changes here for ISO/NSO split, but do we need to explicitly document any state transition restrictions - e.g. an ISO is repriced, are there restrictions or changes required on the resulting option?

[MattCantor]

@MattCantor is going to put together an initial write-up of what goes into the NSO / ISO determinations and propose a way to handle ISO/NSO splits.

Hey @MattCantor, any updates on the write-up here?

#504 (comment)

Hey @MattCantor, I think we decided we didn't need to make any changes here for ISO/NSO split, but do we need to explicitly document any state transition restrictions - e.g. an ISO is repriced, are there restrictions or changes required on the resulting option?

The ISO/NSO split calculator will take an array of the optionee's options as a parameter. This will need to include options that have been repriced. That should be pretty straightforward in the case where the repricing creates a new option. In the case where repricing does not create a new option, we'll need a way to indicate that the option has been repriced and a way to access the details of that repricing (i.e., date, old FMV at grant date, new FMV at grant date)

see issue #535 re: tracking FMV on grant date