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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (11039)	4/10/1998 12:55:00 AM
From: George von Dassow	Read Replies (1) \| Respond to of 213176

The 17 mil is for all executives I thought and there is no indication of the time period over which the options will be issued That was my interpretation as well (both parts). However, 17 mil seems like an awful lot to hand out to execs. If it is all for Jobs, has anyone given any thought to how he is going to come up with a half a billion to exercise those? Last I heard most of his net worth was composed of Pixar, though I could be very much mistaken. Also, Phil in #11028 says he thinks the options price will be the closing price on the day of proxy approval. But I'm not sure that's correct; isn't it the case that the directors' 30,000 options apiece were issued in February, the date the Board (not the shareholders) approved the proxy? I can't remember where, but I read that they received options at 23.50 or so. Thus, perhaps the 17 million are issued at the same time at the same price. The exact quote from the proxy regarding directors' options is (p. 20): "The exercise price of each option will be the closing sales price for the Common Stock as quoted on the Nasdaq National Market on the date of the grant." -- it goes on to note the closing price of 21.25 on Feb. 23 Regarding the executive options (p. 23): "The Administrator determines the exercise price of the options at the time the options are granted. The exercise price of an incentive stock option may not be less than 100% of the fair market value of the Common Stock on the date such an option is granted; .... " -- and more use of the phrase "on the date the option is granted" To me those sound pretty similar. If I am right about the directors' options, I suspect Jobs is in line for, to quote again, "a substantial majority" of those 17 million shares at an exercise price in the low 20's. - George