Air Canada 2006 Annual Report Download - page 104

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A summary of the activity related to Corporation employees participating in the Air Canada Long-term Incentive
Plan is as follows:
2006 2005
Options
(000)
Weighted Average
Exercise
Price/Share (b)
Options
(000)
Weighted Average
Exercise Price/Share
Beginning of year - $ - - $ -
Granted 1,700 21.00 - -
Exercised - - - -
Forfeited - - - -
Outstanding options, end of year 1,700 $ 21.00 - $ -
Options exercisable, end of year - $ - - $ -
2006 Outstanding Options 2006 Exercisable Options
Range of
Exercise Prices
Expiry
Dates
Number of
Options
Outstanding
Weighted Average
Remaining Life
(Years)
Weighted Average
Exercise
Price/Share
Number of
Exercisable
Options
Weighted Average
Exercise
Price/Share
$21.00 2016 1,699,678 10 $21.00 - -
Approximately 346,000 performance share units were also granted under the Long-term Incentive Plan. The
performance share units have a maximum term of three years and a grant price based on fair market value of
the shares at the time of the grant. Performance share units granted under the Long-term Incentive Plan will
vest over three years commencing January 1, 2007 and will incorporate performance vesting features. The
terms of the Long-term Incentive Plan specify that upon the retirement of the employee, performance share
units granted will be prorated at the end of the vested term based on the total number of completed months of
active service during the term of the performance share units.
Jazz Long-Term Incentive Plan
Jazz has an Initial Long-Term Incentive Plan (“Jazz Initial LTIP”) that grants Jazz Fund Units to key employees
as a one-time special award. A total of 603,903 Jazz Fund Units were granted. Under the terms of the plan,
50% of the units granted are subject to vesting conditions based on Jazz’s performance and 50% vest on
December 31, 2008. The Jazz segment recorded compensation expense of $2 during 2006 for this plan and the
total estimated future commitment under this plan is $6.
Employee Ownership Plans
Employee ownership plans have been established for shares or units of ACE, Air Canada or Jazz under which
eligible employees are allowed to invest up to 6% of their base salary for the purchase of shares or units on the
secondary market. Air Canada and Jazz will match 33.3% of the investments made by the employee. During
2006, the Corporation recorded compensation expense of $2 in the Air Canada Services segment and $2 in the
Jazz segment for the employee ownership plans.
104