Page 464 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

450 The Complete Guide to Executive Compensation

Price Per Share
• Equal to FMV at date of grant
• Discounted from FMV at date of grant
• Discounted each year
• Single premium
• Multiple premium
• Indexed
• Performance determined
Number of Shares
• Determined at time of grant
• Indexed
• Performance determined
• Reloaded
• Percentage of total
• Percentage of pool
• Value of shares
Vesting
• Fixed time period
• Peformance accelerated
• Performace determined
• Indexed

1950 1964 1981
Revenue Act Revenue Act ERTA
Option name Restricted Qualified ISO
Option price 85% FMV 100% FMV 100% FMV

Exercise period 10 years 5 years 10 years

LTCG
• After grant 2 years — 2 years
• After exercise 6 months 3 years 1 year
Eligibility — — Employee

Exercisability
• Termination — — 3 months
• Disability — — 1 year
• Death — — Term
Grant exercise cost — — $100k/year

Exercise Not
Restriction —
sequence transferable
Table 8-30. Statutory stock option comparisons