Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • January 2023
  • Case
  • HBS Case Collection

Gerald Weiss (2023)

By: Brian J. Hall, Carleen Madigan, Andrew Wasynczuk and Caroline Witten
  • Format:Print
  • | Language:English
  • | Pages:11
ShareBar

Abstract

Gerald Weiss left Wall Street for the promise of a CFO position at a well-established corporation. He was given a 10-year options package with a guaranteed floor of $12 million and unlimited upside. To ensure the entire package would be worth at least $12 million after 10 years, Gerald negotiated a special provision, which gave him the ability to "gross-up" his options twice over those ten years. If the stock price fell substantially, Gerald would be awarded more options (at-the-money) to bring the entire Black-Scholes value of his package back up to $12 million. Because of the company's culture of informality, the deal was agreed to with a handshake from the CEO, witnessed by the current CFO and the VP of human resources, but not written down. When the stock price actually fell, and Gerald asked to revalue his options package, the company reneged on the deal. Teaching Objective: To generate discussion about the benefits and pitfalls of mega-option grants, the issue of revaluing options, and the conflict between adhering to company culture and protecting the financial interests of the employee.

Keywords

Management Teams; Resignation and Termination; Executive Compensation; Organizational Culture; Agreements and Arrangements; Stock Options; Conflict and Resolution; New York (city, NY)

Citation

Hall, Brian J., Carleen Madigan, Andrew Wasynczuk, and Caroline Witten. "Gerald Weiss (2023)." Harvard Business School Case 923-038, January 2023.
  • Educators
  • Purchase

About The Author

Brian J. Hall

Negotiation, Organizations & Markets
→More Publications

More from the Authors

    • 2024
    • Faculty Research

    How Real Is Hypothetical?: A High-Stakes Test of the Allais Paradox

    By: Uri Gneezy, Yoram Halevy, Brian Hall, Theo Offerman and Jeroen van de Ven
    • March 2023
    • Faculty Research

    Teeing Up Success: Confidential Role Information for Tom Benson

    By: Andrew Wasynczuk and Karim Sameh
    • March 2023
    • Faculty Research

    Teeing up Success: Confidential Role Information for Kate Wize

    By: Andrew Wasynczuk and Karim Sameh
More from the Authors
  • How Real Is Hypothetical?: A High-Stakes Test of the Allais Paradox By: Uri Gneezy, Yoram Halevy, Brian Hall, Theo Offerman and Jeroen van de Ven
  • Teeing Up Success: Confidential Role Information for Tom Benson By: Andrew Wasynczuk and Karim Sameh
  • Teeing up Success: Confidential Role Information for Kate Wize By: Andrew Wasynczuk and Karim Sameh
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.