American Airlines 2001 Annual Report Download - page 33

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31
In May 1997, in conjunction with the labor agreement reached between American and members of the Allied Pilots
Association (APA), the Company established the Pilots Stock Option Plan (The Pilot Plan). The Pilot Plan granted members of
the APA the option to purchase 11.5 million shares of AMR stock at $41.69 per share, $5 less than the average fair market value
of the stock on the date of grant, May 5, 1997. These shares were exercisable immediately. In conjunction with the Sabre spin-off,
the exercise price was adjusted to $17.59 per share. Pilot Plan option activity was:
Year Ended December 31,
2001 2000 1999
Outstanding at January 1 10,990,190 5,420,028 5,791,381
Sabre adjustment - 7,421,048 -
Exercised (1,174,865) (1,850,886) (371,353)
Outstanding at December 31 9,815,325 10,990,190 5,420,028
The weighted-average grant date fair value per share of all stock option awards granted during 2001, 2000 and 1999 was
$12.23, $16.54 and $23.17, respectively.
Shares of deferred stock are awarded at no cost to officers and key employees under the Plans’ Career Equity Program and
will be issued upon the individual’s retirement from AMR or, in certain circumstances, will vest on a pro rata basis. Deferred stock
activity was:
Year Ended December 31,
2001 2000 1999
Outstanding at January 1 4,956,497 2,310,680 2,401,532
Sabre adjustment - 3,165,632 -
Granted - - 146,200
Issued (98,566) (479,177) (122,042)
Canceled (72,219) (40,638) (115,010)
Outstanding at December 31 4,785,712 4,956,497 2,310,680
The weighted-average grant date fair value per share of career equity awards granted during 1999 was $63.54.
A performance share plan was implemented in 1993 under the terms of which shares of deferred stock are awarded at no
cost to officers and key employees under the Plans. The fair value of the performance shares granted is equal to the market price
of the Company’s stock at the date of grant. The shares vest over a three-year performance period based upon certain specified
financial measures of the Company. Performance share activity was:
Year Ended December 31,
2001 2000 1999
Outstanding at January 1 2,507,755 1,215,644 1,565,616
Sabre adjustment - 1,665,432 -
Granted 913,422 1,277,539 509,822
Issued (194,128) (399,517) (208,265)
Awards settled in cash (706,302) (1,200,177) (513,370)
Canceled (33,945) (51,166) (138,159)
Outstanding at December 31 2,486,802 2,507,755 1,215,644
The weighted-average grant date fair value per share of performance share awards granted during 2001, 2000 and 1999 was
$28.27, $32.93 and $62.95, respectively.