Fitbit Shareholders to Vote on Exchange Program for Employee Stock Option Grants

Fitbit shareholders will vote on a stock exchange program May 25 to address employee stock option grants with exercise prices higher than the stock's share price, said a Friday SEC filing. It included a Thursday letter from CEO James Park to employees saying the company has been "exploring ways to address employee stock option grants that are ‘underwater,’ meaning the exercise price is currently higher than our share price. We recognize stock option grants are important incentives and we want to ensure you have the opportunity to realize these benefits in the way they were intended.” The voluntary stock option exchange program would allow eligible employees to exchange, at a two-for-one ratio, underwater stock options for restricted stock units, Park said. Fitbit shares closed down 2 percent Thursday before the Good Friday holiday at $5.37, down about 2/3 from 52 weeks ago.