Trade Desk has repriced stock options for its executives and thousands of employees in an effort to retain talent amid a significant decline in its share price this year. The advertising technology company’s stock has dropped roughly 66% in 2026, leading to concerns that its diminishing share value could undermine employee motivation and retention.
Last week, Trade Desk adjusted about 1.6 million stock options held by Chief Executive Jeff Green, an equal number for other senior executives, and millions more across more than 2,300 employees. The company reduced the exercise price of these options by as much as 85%, bringing them from deeply out-of-the-money to slightly in-the-money based on the stock’s closing price of $13 per share on Friday. This marked a significant shift for employees who had seen their options rendered nearly worthless as the share price tumbled.
The move was disclosed in a securities filing, where the company stated it was concerned that the sustained drop in its stock could “substantially harm” its ability to retain employees holding the options. Trade Desk described the repricing as a “more disciplined choice than issuing new awards,” intended to motivate staff during a challenging market environment.
The slump has reduced CEO Jeff Green’s stake in the company by an estimated $2.7 billion since mid-2025, leaving him with shares valued just under $700 million at recent prices. However, Green received a separate one-time option award in September, comprising seven million shares with a strike price of $14.97. These options vest only if the stock price hits thresholds ranging from $18 to $105 per share.
Repricing stock options is relatively uncommon and often contested by investors, who view it as undermining accountability for stock performance. Analysts note that since 2021, roughly 220 repricings have occurred among U.S.-listed companies—with biotechnology firms making up a notable portion—though about one-third of these exclude top executives.
In previous examples, firms like Moderna and Zillow have repriced options for subsets of their employees without including executives. Critics argue that such adjustments effectively reward executives despite poor stock performance, while proponents claim repricing can be necessary to retain key talent during periods of market volatility.
Shareholders approved Trade Desk’s repricing plan last week by nearly a two-to-one margin. However, much of that approval stemmed from Green’s voting power, which outweighed opposition from outside shareholders. Some observers criticized the repricing as signaling low confidence that the stock will return to previous levels without intervention.
The repricing agreement requires employees and executives to remain with the company and prohibits exercising the options until at least April 19, aligning their interests more closely with shareholders, according to a Trade Desk spokesman.
The company also noted that more than 12 million shares tied to employee options were affected by the repricing. This follows a workforce reduction announced in September, when Trade Desk said it would cut about 15% of its headcount from 3,800 employees at the end of 2025.