Cincinnati Bell 2008 Annual Report Download - page 67
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the executives will be awarded units equal to 150% of the original target unit grant. Incentive awards are interpolated for attainment between 90% and 110% of goal. The fair market value of one
unit is equivalent to one share of common stock and, as required under the Cincinnati Bell Inc. 2007 Long Term Incentive Plan, is determined by the closing price of the Company’s stock on the
NYSE on the date of grant. The closing price of the Company’s common shares on the NYSE on January 25, 2008 was $3.81.
(c) The material terms of the options granted are: grant type — non-incentive; exercise price — fair market value of common stock on grant date; vesting — 28% on the first anniversary of the original
grant date and thereafter at the rate of 3% per month for the next 24 months; term of grant — 10 years; termination — except in the case of death, disability or retirement, any unvested options will
be cancelled 90 days following termination of employment.
(d) For amounts related to option awards, the amounts set forth in this column represent the amount that will be expensed by the Company over the vesting period. The grant date fair value was
determined using the Black-Scholes option-pricing model. For amounts related to stock awards, the amounts set forth in this column represent the expense the Company may record over the next
three years assuming the maximum number of shares are earned and the executive remains with the Company through the applicable vesting dates. The grant date fair value was $3.81 as determined
on the date of grant, January 25, 2008. For further discussion of assumptions and valuation, refer to Note 13 to our Consolidated Financial Statements included in our Annual Report on Form 10-K
for the year ended December 31, 2008.
(e) Amount to be paid as a non-equity incentive plan award represents pro-rated amount based on his date of hire, August 1, 2008.
(f) Amount to be paid as a non-equity incentive plan award reflects a pro-rated amount due to his salary increase from $375,000 to $425,000 in July 2008 when he was promoted to Chief Operating
Officer.
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Proxy Statement