The burn rate is the level at which
companies grant options and restricted stock divided by shares outstanding.
Not exact matches
It has long been understood that if a
company's stock rockets ahead, a rich
grant of
options can lead to big payday.
Looking at the number of
options awarded by S&P 500
companies for the roughly two decades between 1992 and 2010, they found about 20 % of the time boards simply kept the number of
options they
granted to their top executive the same from one year to the next.
Or might they have second thoughts, knowing that Siebel's board has
granted the
company's management the authority to increase the number of
options granted to 20 million?
In other words, Dorsey's stake in the
company was already publicly disclosed, so the amount of his
options grant was already factored into the stock purchase decision of existing shareholders who had already bought the stock.
And yet, buried in a footnote in Siebel's latest 10 - K filing is the fact that the
company has
granted options to employees to buy 9.8 million shares at an average purchase price of $ 6.46.
Meanwhile, in those
companies, the median value of
options granted equals roughly 37 % of an engineer's — and 265 % of a CEO's — base salary, according to Mark Edwards, president of iQuantic, a compensation consulting firm based in San Francisco.
It is now quite common, should a stock collapse, for
companies to lower the purchase price on
options already
granted to employees, in order to stem a mass exodus of talent.
Granting options enables managers to pay employees with an IOU rather than cash — with the prospect that the stock market, not the
company, will one day pay up.
Scott Spector, a Silicon Valley compensation expert with law firm Fenwick & West, says the typical small technology
company he advises may well
grant options equal to 24 % or more of total shares outstanding, up from 15 % just three years ago.
Companies granting large numbers of
options thus show a fatter bottom line than they would if those
options had been listed as an expense.
At BroadBand Technologies, Bhatia didn't want hotshot techies — many of whom have come to expect stock
options — to take the
company's
options for
granted.
At the end of each of the next 10 fiscal years, if certain benchmarks are met by the agency (financial growth, profitability and overall
company health), Linda and I will transfer up to 10 percent of our equity by
granting stock
options to all employees based on the same progressive formula we use to distribute employee cash bonuses.
Stock
options allow employees to purchase shares in their
company at a price fixed when the optionis
granted (the
grant price) for a defined number of years into the future.
If the
company meets yearly targets, employees are reviewed and are
granted options for both their team and their individual performance.
Pursuant to the offering, Centene
granted the underwriters an
option to purchase from the
Company up to an additional $ 260 million in shares of common stock.
The Securities and Exchange Commission (SEC) investigated two large backdated
option grants: one for 4.8 million shares to the
company's executive team and another for 7.5 million shares to Jobs, who was CEO at the time.
The
company behind Harvey's and Swiss Chalet has also
granted the underwriters an over-allotment
option for an additional 1.3 million subordinate voting shares.
Such compensation might typically include salary, bonuses, benefits (such as use of a
company car), and
grants of stock or stock
options.
Total compensation includes information disclosed in
company proxy statements, including salary, bonus, stock and
options valued at
grant date, any deferred compensation, as well as other benefits and perks.
It is much more likely that he will have made a much more modest salary (say, $ 500,000) and to have been
granted stock in the
company (or stock
options) the value of which makes up the rest of his income for the year.
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 with a
The HRC, as part of its regular
option grants for 2008,
granted an
option to Richard M. Kovacevich, who is retiring as Chairman of the
Company at the end of 2008.
For its June 2007 meeting, the HRC asked F.W. Cook's designated representative, George B. Paulin, to report on, and respond to HRC members» questions regarding a range of executive compensation matters, including the
Company's compensation program and current trends, a comparison of
Company and Peer Group compensation amounts and structures, including stock
option and restricted stock
grant practices, recent stockholder initiatives on compensation, compensation committee procedures, the role of consultants, and regulatory activity.
The Compensation Committee believes that
options to purchase shares of our common stock, with an exercise price equal to the market price of our common stock on the date of
grant, are inherently performance - based and are a very effective tool to motivate our executives to build stockholder value and reinforce our position as a growth
company.
A participant who is
granted an incentive stock
option also will not recognize income and the
Company will not be allowed a deduction at the time the
option is
granted.
The
Company has
granted the underwriters a 45 - day
option to purchase up to an additional 3,375,000 units to cover over-allotments, if any, in the offering.
As discussed in the CD&A under «Compensation Components» and «Achieving Compensation Objectives — Pay for Performance,» we have provided incentive compensation in the form of an annual cash incentive award based on
Company, business line and individual qualitative performance results for each fiscal year, and long - term incentive compensation generally in the form of stock
option grants and, in certain circumstances, RSRs to reward our SEOs for contribution to growth in long - term stockholder value.
The
options held by Mr. Duke and Mr. McMillon were
granted to them in prior years as part of their compensation for service as Associates and not as compensation for serving as a director of our
company.
At the time of his hire in 2003, Mr. Drexler invested $ 10 million of his own funds to purchase a substantial equity interest in the
Company and he received large equity
grants in the form of stock
options, premium - priced
options and restricted stock, subject to four and five year vesting conditions.
The
Company granted non-employees
options to purchase shares of common stock totaling 271,668 and 100,000 for the years ended April 30, 2012 and 2013, 100,000 and 23,500 for the eight months ended December 31, 2012 (unaudited) and 2013, and 15,000 and 405,000 for the nine months ended September 30, 2013 and 2014 (unaudited), respectively.
Shkreli was awarded substantial compensation by the
Company during the period of his disloyalty including, but not limited to: substantial cash compensation, 1,605,570 shares of Retrophin stock, a
grant of 1,080,000 time based
options to purchase Retrophin stock (the «December 2013
Option Agreement «-RRB- and a
grant of 400,000
options (half time based and half performance based) to purchase shares of Retrophin stock (the «February 2014
Option Agreement»).
It is the intent of the
Company that
Options and stock appreciation rights
granted to Covered Employees and other Incentive Awards designated as Incentive Awards to Covered Employees subject to Section 8 shall constitute qualified «performance - based compensation» within the meaning of Code Section 162 (m) and regulations thereunder, unless otherwise determined by the Committee at the time of allocation of an Incentive Award.
An early - stage
company typically sells its shares (or grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their «sweat equity» into the C
company typically sells its shares (or
grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their «sweat equity» into the
CompanyCompany.
The
Company also
granted to the initial purchasers of the notes an
option to purchase up to an additional $ 30 million aggregate principal amount of notes within a 13 - day period beginning on, and including, the initial closing date.
If an Award expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares, is forfeited to or repurchased by the
Company due to failure to vest, the unpurchased Shares (or for Awards other than
Options or Stock Appreciation Rights the forfeited or repurchased Shares), which were subject thereto will become available for future
grant or sale under the Plan (unless the Plan has terminated).
Because there is no public market for our common stock, our board of directors determined the common stock fair value at the stock
option grant date by considering several objective and subjective factors, including the price paid by investors for our preferred stock, our actual and forecasted operating and financial performance, market conditions and performance of comparable publicly traded
companies, developments and milestones in our
company, the rights and preferences of our common and preferred stock, the likelihood of achieving a liquidity event, and transactions involving our preferred stock.
Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held
Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic o
Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the
option grants involve illiquid securities in a private
company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic o
company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our
company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic o
company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.
All stock
options and stock appreciation rights will have an exercise price equal to at least the fair market value of our common stock on the date the stock
option or stock appreciation right is
granted, except in certain situations in which we are assuming or replacing
options granted by another
company that we are acquiring.
Each non-employee director who, as of the date of this offering, is serving on our board of directors and is expected to continue his or her service following this offering will be
granted an
option to purchase shares of our Class A common stock with a
grant date fair value of $ 50,000 (or, if such director is unaffiliated with any significant stockholder of the
Company, $ 75,000) on the date the shares subject to this offering are priced.
On the date the shares subject to this offering are priced, each non-employee director who, as of the date of this offering, is serving on our board of directors and is expected to continue his or her service following this offering will be
granted (a) an
option to purchase shares of our Class A common stock with a
grant date fair value of $ 50,000 (or, if such director is unaffiliated with any significant stockholder of the
Company, $ 75,000) and (b) to the extent such director is (i) unaffiliated with any significant stockholder of the
Company and (ii) the chairman of any committee of our board of directors, an additional
option to purchase shares of our Class A common stock with a fair value of $ 10,000 with respect to each such chairmanship.
The
Company grants performance and market - based
options and restricted stock units to employees and directors.
The following table shows the total number of shares of the
Company's common stock that were subject to outstanding restricted stock unit awards
granted under the 2003 Plan, that were subject to outstanding stock
options granted under the 2003 Plan, and that were then available for new award
grants under the 2003 Plan as of September 28, 2013 and as of November 11, 2013.
As of November 11, 2013, a total of 20.873 million shares of the
Company's common stock were subject to all outstanding awards
granted under the
Company's equity compensation plans (including the shares then subject to outstanding awards under the 2003 Plan and the Director Plan, as well as outstanding awards assumed by the
Company in connection with acquisitions, but exclusive of shares that employees may purchase under the Employee Stock Purchase Plan), of which 17.265 million shares were then subject to outstanding restricted stock unit awards and 3.608 million shares were then subject to outstanding stock
options.
However, for stock market
companies, simply creating new shares or issuing stock
options by fiat that are given away to employees without the
company selling them at full value, existing shareholders would experience an economic dilution in profits (dividends) per share going down because of a larger number of shares and, importantly, in economic value, being given away (shares of the
company are literally being simply
granted to someone else, namely employees).
In the George W. Bush administration, changes in accounting regulations and Federal policies made
granting of broad - based stock
options and restricted and other stock
grants to employees in high technology and other
companies less attractive, which led to a huge drop in employee share ownership among the middle class in those
companies and industries.
The stock
options, stock
grants, and profit - and gain - sharing bonuses that
companies pay to executives are counted in official statistics as compensation for work with no asterisk that they are also income to capital.36
The
Company has
granted the Agents an over-allotment
option, exercisable in whole or in part, for a period of 30 days following the closing of the Offering, to purchase up to an additional 4,726,500 Units at $ 3.65 per Unit, 4,726,500 Common Shares at the price of $ 3.62 per Share or 2,363,250 Warrants at the price of $ 0.06 per Warrant, or any combination thereof.
January 15, 2018 - Vancouver, Canada — Klondike Silver Corp. (the «
Company»)(TSX.V: KS) announces that pursuant to its stock option plan, the Company has granted incentive stock options to a director, employees and consultants to purchase a total of 6,970,000 common shares in the capital stock of the company, exercisable for a period -L
Company»)(TSX.V: KS) announces that pursuant to its stock
option plan, the
Company has granted incentive stock options to a director, employees and consultants to purchase a total of 6,970,000 common shares in the capital stock of the company, exercisable for a period -L
Company has
granted incentive stock
options to a director, employees and consultants to purchase a total of 6,970,000 common shares in the capital stock of the
company, exercisable for a period -L
company, exercisable for a period -LSB-...]
K92 Mining Inc. («K92» or «the
Company»)(TSXV: KNT; OTCQB: KNTNF) announces the
grant of 2,230,000 stock
options to directors, officers, employees and consultants of the
Company, pursuant to -LSB-...]