Persons eligible to receive an Incentive
Award under the Plan will include those employees, consultants, independent contractors and non-employee directors selected by the Committee from time to time.
The Compensation Committee administers the Kokua Bonus Plan with respect to our executive officers and determines the amounts of
any awards under this plan to our executive officers.
The Committee may increase or decrease
awards under this plan in its discretion based on factors the Committee deems appropriate,
If
an award under the Plan is forfeited, expires or is settled for cash, any shares subject to such award may, to the extent of such forfeiture, expiration or cash settlement, be used again for new grants under the Plan.
To the extent
an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan.
Does the plan contain an «inverse» multiplier or fungible share reserve that counts options as less than one
award under the plan?
The Compensation Committee administers the Kokua Bonus Plan with respect to the Company's executive officers and determines the amounts of
any awards under this plan to the Company's executive officers.
The Compensation Committee also oversees our equity and incentive - based plans and administers the issuance of stock options, restricted stock units and other
awards under these plans.
Also, no surrender value is
awarded under this plan.
Not exact matches
The board also approved an estimated $ 900 million in repurchases to offset shares
awarded under equity - based compensation
plans during the same period.
Dividend equivalent rights may not be granted on stock appreciation rights
awarded under the 2014
Plan.
Awards granted
under the 2007 Equity Incentive
Plan may consist of incentive stock options, non-qualified stock options, stock appreciation rights (SAR), restricted stock grants, and restricted stock units (RSU).
Shares that are exchanged by a participant or withheld by Apple to pay the exercise price of an option or stock appreciation right granted
under the 2014
Plan, as well as any shares exchanged or withheld to satisfy the tax withholding obligations related to any option or stock appreciation right, will not be available for subsequent
awards under the 2014
Plan.
This number is calculated using the share counting rules described in Sections 5 (a) and 5 (b) of the 2014
Plan and includes the number of shares available for new
award grants
under the 2014
Plan out of the 385 million shares authorized by shareholders upon adoption of the 2014
Plan; the number of shares available for new
award grants
under the 2003 Employee Stock
Plan (the «2003
Plan») on the date that shareholders approved the 2014
Plan; the number of shares subject to outstanding stock options
under the 2003
Plan and 2014
Plan as of November 17, 2015; and two times the number of shares subject to outstanding RSUs
under the 2003
Plan and 2014
Plan as of November 17, 2015 (all adjusted for the 7 - for - 1 stock split).
For example, if a 100 share RSU
award made
under the 2014
Plan or the 2003
Plan is forfeited before it vests, the 200 shares would again be available for subsequent
awards under the 2014
Plan.
Except as described below,
awards under the 2014
Plan generally are not transferable by the recipient other than by will or the laws of descent and distribution, and stock options and stock appreciation rights are generally exercisable, during the recipient's lifetime, only by the recipient.
In no case, except due to an adjustment to reflect a stock split or other event referred to
under «Adjustments» below, and except for any repricing that may be approved by shareholders, will the
plan administrator (1) amend an outstanding stock option or stock appreciation right to reduce the exercise price or base price of the
award, (2) cancel, exchange, or surrender an outstanding stock option or stock appreciation right in exchange for cash or other
awards for the purpose of repricing the
award, (3) cancel, exchange, or surrender an outstanding stock option or stock appreciation right in exchange for an option or stock appreciation right with an exercise or base price that is less than the exercise or base price of the original
award, or (4) take any other action that is treated as a repricing
under U.S. generally accepted accounting principles.
Except as otherwise provided below, shares that are subject to
awards that expire or for any reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason are not paid or delivered
under either the 2003
Plan or the 2014
Plan will again be available for subsequent
awards under the 2014
Plan.
«Option» means an ISO or NSO granted
under the
Plan entitling the Participant to purchase Shares upon satisfaction of the conditions contained in the
Plan and the applicable
Award Agreement.
The
plan administrator may award stock, subject to vesting conditions, under the 2014 P
plan administrator may
award stock, subject to vesting conditions,
under the 2014
PlanPlan.
Shares issued with respect to
awards granted
under the 2014
Plan other than stock options or stock appreciation rights are counted against the 2014
Plan's aggregate share limit as two shares for every one share actually issued in connection with the
award.
Shares issued in respect of
awards other than stock options and stock appreciation rights granted
under the 2014
Plan and the Director Plan count against the shares available for grant under the applicable plan as two shares for every share gran
Plan and the Director
Plan count against the shares available for grant under the applicable plan as two shares for every share gran
Plan count against the shares available for grant
under the applicable
plan as two shares for every share gran
plan as two shares for every share granted.
We generally do not enter into severance arrangements with our named executive officers, and none of the equity
awards granted to the named executive officers
under Apple's equity incentive
plans provide for acceleration in connection with a change in control or a termination of employment, other than as noted below or in connection with death or disability.
Any such shares subject to
awards other than stock options and stock appreciation rights granted
under either such
Plan will become available taking into account the 2:1 premium share counting rule applicable at the time of granting these types of
awards.
Awards may be granted under the Plan in substitution for or in connection with an assumption of employee, director and / or consultant stock options, stock appreciation rights, restricted stock or other stock - based awards granted by other entities to persons who are or who will become Employees or Consultants in respect of the Company or one of its Subsidiaries in connection
Awards may be granted
under the
Plan in substitution for or in connection with an assumption of employee, director and / or consultant stock options, stock appreciation rights, restricted stock or other stock - based
awards granted by other entities to persons who are or who will become Employees or Consultants in respect of the Company or one of its Subsidiaries in connection
awards granted by other entities to persons who are or who will become Employees or Consultants in respect of the Company or one of its Subsidiaries in connection with a
The Committee approves, by direct action or through delegation, participation in and all
awards, grants and related actions
under IBM's various equity
plans, reviews changes in IBM's pension
plans primarily affecting corporate officers, and manages the operation and administration of the IBM Supplemental Executive Retention
Plan.
With respect to the exercise of stock appreciation rights, the gross number of Shares covered by the portion of the exercised
award, whether or not actually issued pursuant to such exercise, cease to be available
under the 2013
Plan.
However, Shares used to pay the exercise price or purchase price of an option or stock appreciation right or to satisfy tax withholding obligations relating to such
awards do not become available for future issuance
under the 2013
Plan.
Any Shares subject to
Awards granted
under the
Plan other than Options or Stock Appreciation Rights shall be counted against the numerical limits of this Section 3 as two and fifteen - one hundredths (2.15) Shares for every one (1) Share subject thereto and shall be counted as two and fifteen - one hundredths (2.15) Shares for every one (1) Share returned to or deemed not issued from the
Plan pursuant to this Section 3.
No additional
awards may be granted
under the
plans pursuant to which such
awards were initially granted.
Other than periodic incentive
plans that were historically provided to Mr. McNeill based on the achievement of specific customer - related metrics, including as set forth
under the «Non-Equity Incentive
Plan Compensation» column in «Executive Compensation — Summary Compensation Table» below, we do not currently have or have
planned any specific arrangements with our named executive officers providing for cash - based bonus
awards.
Accordingly, our approximately 25,050,954 outstanding
awards (not including
awards under our employee stock purchase
plan) plus 25,865,562 Shares available for future grant
under our equity
plans (not including
under our employee stock purchase
plan) as of March 31, 2018 represented approximately 10.5 % of our Common Stock outstanding (commonly referred to as the «overhang»).
As of March 31, 2018, equity
awards outstanding
under Salesforce equity
plans were approximately: 24,905,926 stock options, no unvested restricted shares, 23,871,234 restricted stock units and 806,427 performance - based restricted stock units.
As described
under «Item 4 — Approve the Amended and Restated Long - Term Incentive Compensation
Plan» on page 88 of this proxy statement, the Board is proposing to amend the LTICP to permit grants of equity
awards to non-employee directors.
Additional information about the LTICP and other
plans pursuant to which
awards in the form of shares of the Company's common stock may be made to directors and employees in exchange for goods or services is provided
under «Equity Compensation
Plan Information.»
Deferral of an incentive compensation
award paid in cash
under this Policy shall be made pursuant to the provisions of the Company's Deferred Compensation
Plan.
(d) «
Award» means, individually or collectively, a grant
under the
Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Bonus
Awards, Performance Units or Performance Shares.
We
award cash compensation to our NEOs in the form of base salaries and annual cash incentives
under our Kokua Bonus
Plan, and we
award equity compensation in the form of stock options, restricted stock units («RSUs») and PRSUs.
Shares used to pay the purchase price or satisfy tax withholding obligations of
awards other than stock options or stock appreciation rights become available for future issuance
under the 2013
Plan.
forfeited to or repurchased due to failure to vest, the unpurchased shares (or for
awards other than stock options or stock appreciation rights, the forfeited or repurchased shares) will become available for future grant or sale
under the 2015
Plan.
Under the Bonus
Plan, our compensation committee, in its sole discretion, determines the performance goals applicable to
awards, which goals may include, without limitation: attainment of research and development milestones, sales bookings, business divestitures and acquisitions, cash flow, cash position, earnings (which may include any calculation of earnings, including but not limited to earnings before interest and taxes, earnings before taxes, earnings before interest, taxes, depreciation and amortization and net earnings), earnings per share, net income, net profit, net sales, operating cash flow, operating expenses, operating income, operating margin, overhead or other expense reduction, product defect measures, product release timelines, productivity, profit, return on assets, return on capital, return on equity, return on investment, return on sales, revenue, revenue growth, sales results, sales growth, stock price, time to market, total stockholder return, working capital, and individual objectives such as MBOs, peer reviews, or other subjective or objective criteria.
The following table provides information on
awards granted
under the PfR
Plan for fiscal 2010 and
awards of PRUs and
awards of restricted stock units («RSUs») granted as part of fiscal 2010 long - term incentive compensation:
repurchased by us due to failure to vest, the unissued shares (or for
awards other than stock options or stock appreciation rights, the forfeited or repurchased shares) will become available for future grant or sale
under the 2015
Plan.
Our board of directors or our compensation committee, in their sole discretion, may alter, suspend, or terminate the Bonus
Plan, provided such action does not, without the consent of the participant, alter or impair the rights or obligations
under any
award already earned by such participant.
Additional information about the LTICP and other
plans pursuant to which
awards in the form of shares of our common stock may be made to directors and employees in exchange for goods or services is provided
under «Equity Compensation
Plan Information.»
All options and restricted shares
awarded under our equity
plans are also subject to a double - trigger accelerated vesting condition
under the terms of our equity
award letters, which provides for an acceleration of the vesting schedule if the associate is terminated without cause or resigns for good reason (as defined by the applicable equity
plan) within the one - year period following a change in control (as defined by the applicable equity
plan).
Awards granted
under the
Plan may be Nonstatutory Stock Options (NSOs), Incentive Stock Options (ISOs), Stock Appreciation Rights (SARs), Restricted Stock, or Restricted Stock Units (RSUs), as determined by the Administrator at the time of grant.
If we terminate Mr. Drexler's employment without cause or he terminates his employment with good reason, Mr. Drexler will be entitled to receive (i) a payment of his earned but unpaid annual base salary through the termination date, any accrued vacation pay and any un-reimbursed expenses, and (ii) subject to Mr. Drexler's execution of a valid general release and waiver of claims against us, as well as his compliance with the non-competition, non-solicitation and confidential information restrictions described below, (a) a payment equal to his annual base salary and target cash incentive
award, one - half of such payment to be paid on the first business day that is six (6) months and one (1) day following the termination date and the remaining one - half of such payment to be paid in six equal monthly installments commencing on the first business day of the seventh calendar month following the termination date, (b) a payment equal to the product of (x) the last annual cash incentive
award Mr. Drexler received prior to the termination date and (y) a fraction, the numerator of which is the number of days of service completed by Mr. Drexler in the year of termination and the denominator of which is 365, such amount to be paid on the first business day that is six (6) months and one (1) day following the termination date, and (c) the immediate vesting of such portion of unvested restricted shares and stock options as provided and pursuant to the terms of the relevant grant agreements
under our 2003 Equity Incentive
Plan.
Awards under the Bonus
Plan may be granted only to executive officers of the Company who are selected to participate in the Bonus
Plan by the compensation committee of the Company's Board of Directors (the «Committee»).
Except for those executives who have an employment agreement that expressly provides for payment of an
Award under the Bonus
Plan in limited circumstances, in the event a participant's employment is terminated for any reason prior to the date of payment of an
Award under the Bonus
Plan, such participant will not be entitled to any bonus
under the Bonus
Plan, provided that in the event that a participant's employment terminates during the performance period due to (i) death or (ii) disability, the Committee may, at its sole discretion, authorize the Company to pay, on a prorated basis, an
Award determined in accordance with the terms and conditions of Bonus
Plan.