Millions now hold shares or share options in their employer, but the recent bear market means their value may have fallen, write Kirsty Smith and Jackie Luesby.

As a result of the current economic environment, many of the share options that companies have issued to employees and directors over the last few years will now be ‘underwater’ (that is, their exercise price is now above the prevailing share price). Moreover, performance targets originally set in the terms of the options might now be unobtainable.