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Will I Get Paid? Employee Stock Options and Mergers and Acquisitions

How labor is affected by mergers and acquisitions?
Can wealth transfers from labor to shareholders be a source of takeover gains?

  • More specific focus: The treatment of ESOs held by rank-and-file employees at target firms
  • ESOs are a large part of compensation packages (particularly at high-tech firms)
  • ESOs can often be treated with discretion