Can we keep our heads (and options) above water? As we enter the middle of the first quarter of 2024, many management teams and boards are still asking themselves this question. Volatility in equity markets has, for many employers, resulted in their employees holding stock options with exercise prices significantly above the current market price of their stock (often referred to as “underwater” or “out of the money” options), making the option a less effective (or ineffective) means of retaining and incentivizing those employees.