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We actually came up with a term for this when it happened at our
company:
quadriquintecimate - (v) To reduce by four-fifths.
Ms. Wright wrote:
There are a couple of other tricks to look out for as well. One is the
"reverse-split," wherein the board decides to reduce the outstanding
number of shares by a certain ratio (e.g., divide the total shares,
including options, by 5). In theory this multiplies the value of each
share, but I had one experience where the board later re-valued the
option price to the original pre-split value, so they effectively simply
stripped us of options.
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