Crocs to Buy Back Employee Stock

Crocs Inc. shares rose 21.2 percent Thursday after the company announced a cash tender offer for employee stock options in an effort to restore incentive value for staff.

The Niwot, Colo.-based manufacturer offered an aggregate cash price of $315,000 for those with stock options, at an exercise price of $10.50 per share or above, which as of March 27 totaled around 5 million stock options. The tender will expire on April 30, and Crocs will incur a one-time cash charge of $32 million as a result.

“The decline in our common stock price has substantially eliminated the incentive and retention value of the options granted to our employees,” the company said in a filing with the Securities and Exchange Commission. “After a comprehensive review of our current compensation and benefit program, and the impact of the decline in our common stock price on our stock-option awards, we determined that this offer is consistent with restoring the incentive value of our long-term performance award programs.”

Crocs’ shares finished Thursday’s trading session at $1.77, up 31 cents, after hitting a high of $1.90 earlier in the day. Volume exceeded 4.4 million shares, more than triple the daily average of 1.2 million.

The news follows an announcement earlier this week that the company had received a six-month extension for its credit facility with Union Bank of California.

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