Cablevision 2014 Annual Report Download - page 144

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except share and per share amounts)
F-55
NOTE 14. EQUITY AND LONG-TERM INCENTIVE PLANS
Cablevision's Equity Plans
In April 2006, Cablevision's Board of Directors approved the Cablevision Systems Corporation 2006 Employee Stock Plan and
the Cablevision Systems Corporation 2006 Stock Plan for Non-Employee Directors, which was approved by Cablevision's
stockholders at its annual stockholders meeting on May 18, 2006.
Under the 2006 Employee Stock Plan, Cablevision is authorized to grant incentive stock options, nonqualified stock options,
restricted shares, restricted stock units, stock appreciation rights and other equity-based awards. Cablevision may grant awards
for up to 46,000,000 shares of CNYG Class A common stock (subject to certain adjustments). Options (including performance
based options) and stock appreciation rights under the 2006 Employee Stock Plan must be granted with an exercise price of not
less than the fair market value of a share of CNYG Class A common stock on the date of grant and must expire no later than 10
years from the date of grant (or up to one additional year in the case of the death of a holder). The terms and conditions of awards
granted under the 2006 Employee Stock Plan, including vesting and exercisability, are determined by the compensation committee
of the Board of Directors and may be based upon performance criteria.
Under the 2006 Stock Plan for Non-Employee Directors, Cablevision is authorized to grant nonqualified stock options, restricted
stock units and other equity-based awards. Cablevision may grant awards for up to 1,000,000 shares of CNYG Class A common
stock (subject to certain adjustments) under this plan. Options under this plan must be granted with an exercise price of not less
than the fair market value of a share of CNYG Class A common stock on the date of grant and must expire no later than 10 years
from the date of grant (or up to one additional year in the case of the death of a holder). The terms and conditions of awards
granted under the 2006 Stock Plan for Non-Employee Directors, including vesting and exercisability, are determined by the
compensation committee. Unless otherwise provided in an applicable award agreement, options granted under this plan will be
fully vested and exercisable, and restricted stock units granted under this plan will be fully vested, upon the date of grant. Unless
otherwise determined by the compensation committee, on the date of each annual meeting of Cablevision's stockholders, each
non-employee director will receive a number of restricted stock units for the number of shares of common stock equal to $150
divided by the fair value of a share of CNYG Class A stock based on the closing price on the date of grant. In 2014 and 2013,
Cablevision granted its non-employee directors an aggregate of 66,421 and 71,200 restricted stock units, respectively, which vested
on the date of grant. Total non-employee director restricted stock units outstanding as of December 31, 2014 were 434,596.
Previously, Cablevision had an employee stock plan ("1996 Employee Stock Plan") under which it was authorized to grant incentive
stock options, nonqualified stock options, restricted shares, restricted stock units, stock appreciation rights, and bonus awards and
a non-employee director stock plan ("1996 Non-Employee Director Stock Plan") under which it was authorized to grant options
and restricted stock units. The 1996 Employee Stock Plan expired in February 2006 and the 1996 Non-Employee Director Stock
Plan expired in May 2006. Outstanding options issued pursuant to these plans have expiration dates through 2015.
Options and stock appreciation rights have typically been scheduled to vest over three years in 33-1/3% annual increments and
expire 10 years from the grant date. Restricted shares have typically been subject to three or four year cliff vesting. Performance
based options granted in 2012 vested over a two year period in 50% annual increments and expire 10 years from the date of grant.
Performance based restricted stock awards are subject to three year cliff vesting subject to achievement of performance criteria.
Cablevision does not have any stock appreciation rights outstanding at December 31, 2014 and 2013.
Since share-based compensation expense is based on awards that are ultimately expected to vest, such compensation (which
includes options, restricted stock, and stock appreciation rights) for the years ended December 31, 2014, 2013 and 2012 has been
reduced for estimated forfeitures. Forfeitures were estimated based primarily on historical experience.
The following table presents the share-based compensation expense including expenses related to AMC Networks share-based
awards held by Company employees, recognized by the Company as selling, general and administrative expense for the years
ended December 31, 2014, 2013 and 2012: