In the wake of its recent down round, Foursquare will allow any employee to convert out-of-the-money stock options into restricted stock units, or RSUs, a spokeswoman said Tuesday.
The move, which will go into effect over the next few weeks, ensures employees will have stock of some value. Unlike options, which convert to stock at a certain price, RSUs are already shares which vest over time–in this case, over one year. Foursquare’s employees can convert underwater options to RSUs at a ratio “very close” to one-to-one, the spokeswoman said. She declined to say how many options are underwater.