Large Companies Moving Toward Grant Date Closing Price as Exercise Price for Options

According to a 2007 Towers Perrin analysis of 89 Fortune 250 companies, 51 now set the exercise price for stock options at not less than the grant date closing price. That is up from 29 before 2007. Using grant date closing prices involves less explanation to shareholders in proxy disclosure information than other methods, such as the average price on the date the award was granted.