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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Baldur Fjvlnisson who wrote (169149)	8/8/2002 9:52:21 AM
From: Ted The Technician	Read Replies (1) \| Respond to of 186894

I checked the 10Q for FAS123-like disclosure information, but I did not find any estimated option grant costs for the quarter. Instead, this is what I found (mostly useless to me).... ======================= Employee Stock Options Our stock option program is a broad-based, long-term retention program that is intended to attract and retain talented employees and align stockholder and employee interests. The program consists of two plans: one under which officers, key employees and non-employee directors may be granted options to purchase shares of our stock, and a broad-based plan under which options may be granted to all employees other than officers and directors. Substantially all of our employees participate in one of the plans. We have a goal to keep the dilution related to our option program to an average of less than 2% annually. The dilution percentage is calculated as the new option grants for the year, net of options forfeited by employees leaving the company, divided by the total outstanding shares at the beginning of the year. All stock option grants are made after a review by, and with the approval of, the Compensation Committee of the Board of Directors. All members of the Compensation Committee are independent directors, as defined in the applicable rules for issuers traded on The Nasdaq Stock Market*. See the "Report Of The Compensation Committee On Executive Compensation" appearing in the company's proxy statement dated April 10, 2002 for further information concerning the policies and procedures of the company and the Compensation Committee regarding the use of stock options. As of the end of June 2002, the total outstanding options held by the five most highly compensated executive officers amounted to 2.3% of the approximately 750 million outstanding options held by all employees. Options granted to employees from 1998 through the first half of 2002 are summarized as follows: (Shares in millions) 1998 1999 2000 2001 2002 YTD -------------------------------------------------------------------------------- Total options granted during the period 96 107 167 247 38 -------------------------------------------------------------------------------- Less options forfeited (35) (25) (32) (49) (18) -------------------------------------------------------------------------------- Net options granted 61 82 135 198 20 -------------------------------------------------------------------------------- Net grants during the period as % of outstanding shares 0.9% 1.2% 2.0% 3.0% 0.3% -------------------------------------------------------------------------------- Grants to top 5 officers during the period as % of total options granted 3.4% 0.7% 0.4% 0.7% 5.6% -------------------------------------------------------------------------------- During the first half of 2002, we granted options to purchase approximately 38 million shares of our stock to our employees, which was a net grant of options for 20 million shares after deducting 18 million shares for options forfeited. The net options granted after forfeitures represented 0.3% of our total outstanding shares of approximately 6,690 million as of the beginning of 2002. For additional information about our employee stock option plan activity for the years 1999 through 2001, and the pro forma earnings presentation as if we had expensed our stock option grants using the fair value method of accounting, please refer to pages 30 and 31 of our 2001 Annual Report to Stockholders. For the first half of 2002, options granted to the five most highly compensated executive officers amounted to 5.6% of the grants made to all employees. Based on our current plans, the grants to the top five executive officers are expected to be 3.7% of the estimated total option grants of 58 million shares for the full year 2002. This estimate could differ from the actual percentage for 2002 depending on grants of options during the second half of the year for planned hiring, acquisition, merit, and retention-based programs. Options granted to the top five officers as a percentage of the total options granted to all employees vary from year to year. In 2002 and in 1998 they were a higher percentage of the total grants than in the other years shown as they included additional grants to key officers in recognition of their future potential in leading the corporation. These additional grants are not made every year. In addition, the number of newly hired employees is lower in 2002 as a result of our cost containment efforts and thus the level of option grants to newly hired employees is lower. For additional information about the compensation of our executive officers and stock option grants to our top five executive officers, please refer to our proxy statement dated April 10, 2002.