Adobe 2004 Annual Report Download - page 49

49
Named Executive Officer Option Grants
The following table sets forth information regarding stock options granted during fiscal 2004, to our Named
Executive Officers. All options were granted with an exercise price equal to the closing price of our common stock
on the date of grant. Potential realizable values are net of exercise price, but before taxes associated with exercise.
These amounts represent hypothetical gains that could be achieved for the options if exercised at the end of the
option term of seven years. The assumed 5% and 10% rates of stock price appreciation are provided for purposes of
illustration only and do not represent our estimate or projection of the future price of our common stock.
(In actual dollars) Number of
Securities
Underlying
Options
% of Total
Options
Granted to
Employees (1)
Exercise Expiration
Potential Realizable Value
at Assumed Annual Rates
of Stock Price
Appreciation for Option
Term
Name Granted Year-to-Date Price Date 5% 10%
Bruce R. Chizen............. 450,000 4% $ 43.55 5/19/2011 $ 7,978,151 $ 18,592,483
Shantanu Nara
y
en .......... 150,000 1 43.55 5/19/2011 2,659,384 6,197,494
Murra
y
J. Demo ............. 125,000 1 43.55 5/19/2011 2,216,153 5,164,579
Jim Ste
p
hens.................. 100,000 1 43.55 5/19/2011 1,772,922 4,131,663
James Hee
g
e
r
................. 100,000 1 43.55 5/19/2011 1,772,922 4,131,663
(1) Based on approximately 10.4 million shares subject to options granted to employees under our option plans during fiscal
2004.
Stock Option Exercises and Option Holdings
The following table shows aggregated stock options exercised by the Named Executive Officers in fiscal 2004,
including the total value of gains on the date of exercise based on actual sale prices or on the closing price that day if
the shares were not sold that day, in each case less the exercise price of the stock options. In addition, the number of
shares covered by both exercisable and non-exercisable stock options, as of December 3, 2004, is shown. Also
reported are the values for “In-the-Money” options. The dollar amounts shown in the “In-the-Money” column
represent the positive spread between the exercise price of any such existing stock options and closing price as of
December 3, 2004 of our common stock.
Number of Shares
Acquired Upon
Value Realized
Number of Securities
Underlying Unexercised
Options
Value of Unexercised
In-the-Money Options (2)
Name Exercise Upon Exercise
(1) Exercisable Unexercisable Exercisable Unexercisable
Bruce R. Chizen……….. 600,000 $ 15,780,095 1,784,489 875,002 $ 24,445,523 $ 24,242,823
Shantanu Nara
y
en…….. 450,000 11,180,935 796,550 400,000 10,090,543 12,034,000
Murra
y
J. Demo………. 348,954 9,341,713 658,711 375,002 3,903,499 11,548,823
Jim Ste
p
hens…………. 369,700 8,097,179 327,800 250,002 1,537,103 7,414,573
James Hee
g
e
r
………… 100,000 2,012,514 268,749 281,251 7,166,351 8,177,649
(1) The “value realized” represents the total value of gains on the date of exercise based on actual sale prices or on the closing price that
day if the shares were not sold that day, in each case less the exercise price of the stock options. See related Section 16 filings for
detailed information on dispositions of shares.
(2) Option values are based on $62.96, the closing price of our common stock on December 3, 2004, as reported by the Nasdaq National
Market.