Could it be the 26m figure for last year is inflated by the exchange program then? (26m grants in just one year is somewhat hard to imagine).
Right. From the 10-K for 2003:
sec.gov
"Options to purchase approximately 19 million shares of our common stock were tendered for exchange and cancelled on July 28, 2003. On January 30, 2004, we granted options to purchase 12,111,371 shares of our common stock at an exercise price of $14.86, which represented the closing price of our common stock on that date, in exchange for options cancelled."
And from the 2003 proxy statement:
sec.gov
"the new options will vest beginning one year from the date they are cancelled, dependent upon continued employment with AMD. This means that all new options would be completely unvested at the time of the new grant, regardless of whether the surrendered options were partially or wholly vested. Once vesting begins, the new options will have the same vesting terms as the surrendered options, delayed by one year. Consequently, new options replacing surrendered options that were vested at the time they were cancelled will vest one year from the date they were cancelled. New options replacing surrendered options that were not vested at the time they were cancelled will resume the surrendered option's vesting schedule, beginning one year from the date they were cancelled."
Since "the new options...have the same vesting terms as the surrendered options, delayed by one year", it's possible that many of the exchanged options have already vested and will not be expensed over the next few years. |
