ADT 2007 Annual Report Download - page 57

Post-Separation Continuing Corporate Post-Separation Continuing Employees in
Type of Equity Award Employees Non-Corporate Roles
One-half of the Covidien and
Tyco Electronics shares or RSUs
vested on July 2, 2007, and the
second half will vest on the
earlier of the original vesting date
or January 2, 2008.
The original vesting schedules of
the Tyco shares and RSUs did not
change.
RSUs granted after For every one pre-Separation Same treatment as for continuing
September 29, 2006 RSU award, unit holders received corporate employees of Tyco.
approximately 0.63 new Tyco
RSUs. The original vesting
schedules did not change.
Performance Shares granted Converted into time-based RSUs Converted into time-based RSUs
prior to September 29, 2006 in post-Separation Tyco, Covidien in post-Separation Tyco. For every
(See ‘‘Conversion of 2006 and Tyco Electronics. For every one pre-Separation performance
Performance Shares’’ for one pre-Separation performance share, award holders received
more details) share, award holders received: approximately 0.63 new Tyco
RSUs. The original
• 0.25 new Tyco RSUs; vesting date of September 30, 2008
did not change.
• 0.25 Covidien RSUs; and
• 0.25 Tyco Electronics RSUs.
All awards vest on September 30,
2008, which is the original vesting
date of the original award.
Deferred Stock Unit Awards All DSUs were converted into Not applicable.
(‘‘DSUs’’) post-Separation Tyco DSUs so
that the value of the awards was
maintained at the time of
Separation. For every one pre-
Separation DSU, our executives
and Directors received
approximately 0.63 DSUs in new
Tyco.
Conversion of 2006 Performance Shares
Tyco uses performance shares as a form of long-term compensation. Performance shares were first
granted in November 2005 and were designed to encourage both sustained increases in organic growth
and profitable investment of capital over a three year period. As a result, the performance measures
that governed the payouts of the performance shares were (i) increases in organic revenue and
(ii) increases in return on invested capital (‘‘ROIC’’). Both performance measures covered the period
from October 1, 2005 through September 30, 2008, and both were based on Tyco’s consolidated results
for all of its pre-Separation businesses, including healthcare and electronics. However, as a result of the
planned Separation, management and the Compensation Committee concluded that these performance
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