Reprice

  

See: Repricing Opportunity.

Repricing happens all the time in normal deals. "You said the used Chevette I just bought from you had no problems, but in the test drive, it dinged, the tires squeaked, and the radio played disco only. I'll still buy it from you, but we'll have to reprice the deal."

The same thing happens in business at all levels. Some of the repricing is "just part of the negotiation." Other times, buyers get cold feet. Repricing also happens in executive compensation when it's pegged to stock prices, especially when the stocks move massively by no fault of the execs. Like...a new CEO is brought into a tech company and paid $10 million in RSUs, which she vests into over 4 years. The problem? The stock was $297 when she joined, and after she completes her audit, she finds 3 incidents of fraud that were the result of the previously-fired CEO. They have to restate earnings, and the stock craters to $100.

So now her $10 million grant is worth $3 million, and she feels "taken." The board doesn't want her to leave, so they reprice, in this case granting more RSUs to make up the diff.

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