Response Post on Mitigation Strategies

Please respond to the following post by critiquing their view on mitigation strategies and offer a counterpoint or additional resources the students can use to expand their understanding.







I chose Zoom Video Communications for this discussion. Over the past few years, all of us have most likely used Zoom for a meeting or even this class. Zoom has an employee stock purchase plan. “In April 2019, we adopted the 2019 Plan, which became effective in connection with our IPO. Our 2019 Plan provides for the grant of stock options, stock appreciation rights, RSAs, RSU awards, performance awards, and other forms of awards. The awards generally vest over four years. The plan administrator determines the term of stock options granted under the 2019 Plan, up to a maximum of 10 years.” (Annual Report, 2022 p 86)



According to the Annual Report, “There were no options granted for the fiscal years ended January 31, 2022 and 2021. The weighted-average grant date fair value of options granted to employees during the fiscal year ended January 31, 2020 was $25.17. The intrinsic value of the options exercised, which represents the difference between the fair market value of our common stock on the date of exercise and the exercise price of each option, was $843.0 million, $1,786.7 million, and $767.3 million during the fiscal years ended January 31, 2022, 2021, and 2020, respectively. As of January 31, 2022, unrecognized stock-based compensation expense related to outstanding unvested stock options was $19.7 million, which is expected to be recognized over a weighted-average period of 0.8 years” (Annual Report, 2022, pgs 86-87)



As a retiree of the company, I would sell some of my shares to invest in a company that pays out a higher dividend.