Hearing a new expression twice in one day is the start of a trend: first up I heard mention of "spring-loading" in a discussion on executive remuneration on ABC NewsRadio (I think it was in the context of a discussion about executive salaries and backdating options in Germany related to problems with BenQ-Siemens) and then I found a discussion on new corporate terms (including spring-loading) on Corporate Blawg UK.
So what does it mean?
"Spring-loading is when a company brings forward an
option allocation date so the holder can benefit from anticipated rises
in the share price.
Bullet-dodging is the opposite, when the company delays the grant of an option so the owner can benefit from an expected fall in share price. "
If you're interested in more of what is happening in Europe, read Blawg Review#78 hosted this week at Britain's Human Law.
UPDATE: Bob Joss on executive salaries (The Australian)
1.Everyone should have a love.Because love is pure.
Posted by: toryburch | January 21, 2011 at 01:30 PM