Top Option Grants, Stock Awards in February 2009

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					                                                                                                                                                       Executive Compensation




Top Option Grants, Stock Awards in February 2009
E    very month, Compliance Week pub-
     lishes a list of the largest stock option
grants and restricted stock awards during
                                                                         worth $40 million, based on a grant-date
                                                                         price of $217.77. Trailing behind him was
                                                                         Raymond Mcdonnell, COO of the com-
                                                                                                                                     cent higher than the company’s closing
                                                                                                                                     stock price of $23.82.
                                                                                                                                         Companies continue to issue perfor-
the previous period. The data and analysis                               pany; he received 45,920 shares on the                      mance-based options and restricted stock.
are provided by compensation research                                    same day, worth a total of $10 million.                     On Feb. 15, JDS Uniphase granted op-
firm Equilar.                                                                                                                        tions to three executives with the follow-
   The largest grant of stock options went                               Trends, Performance                                         ing performance-based criteria:
to Muhtar Kent, CEO of Coca-Cola.
Kent received a grant of nearly 1.17 mil-
lion options on Feb. 19 with an exercise
                                                                         A    ccording to Equilar, several grants
                                                                              of “premium-priced” options were
                                                                         awarded in February, an increasingly
                                                                                                                                         “The Performance Stock Options will
                                                                                                                                     vest in three equal installments on the lat-
                                                                                                                                     ter to occur of (i) the first, second, and
price of $43.20 each, implying a face value                              common compensation practice. Awards                        third anniversaries of the grant date and
of more than $50.4 million. Coke’s arch-                                 are considered premium-priced when the                      (ii) the appreciation of the price of the
nemesis, Pepsico, also appeared on the list                              exercise price of the grant is higher than                  company’s common stock such that it will
last month: CEO Indra Nooyi received a                                   the stock price on the grant date.                          have traded at a minimum of a 25 per-
grant of 452,830 options on Feb. 6 with an                                  For example, on Feb. 2, Broadridge Fi-                   cent premium to the exercise price of the
exercise price of $53.00, implying a face                                nancial granted 11 executives options with                  Performance Options for 30 consecutive
value of almost $24 million.                                             exercise prices 20 percent higher than the                  trading days.”
   The largest restricted stock award went                               company’s closing stock price of $13.79.                        For more coverage of executive com-
to Robert Silberman, chairman and CEO                                    And on Feb. 23, UnitedHealth Group                          pensation and spreadsheets of past awards,
of Strayer Education Corp. Silberman re-                                 granted stock appreciation rights to eight                  go to www.complianceweek.com and en-
ceived a grant of 183,680 shares on Feb. 10                              executives with an exercise price 24.9 per-            
				
DOCUMENT INFO
Description: The largest grant of stock options went to Muhtar Kent, CEO of Coca-Cola. Kent received a grant of nearly 1.17 million options on Feb. 19 with an exercise price of $43.20 each, implying a face value of more than $50.4 million. Coke's archnemesis, Pepsico, also appeared on the list last month: CEO Indra Nooyi received a grant of 452,830 options on Feb. 6 with an exercise price of $53.00, implying a face value of almost $24 million.
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