Computer Associates 2007 Annual Report Download - page 136

1998 Plan. The remaining vested shares will be paid out in increments of 30% and 40% of the total on August 25, 2007 and
2008, respectively.
Performance Awards
Under the Company’s long-term incentive program for fiscal year 2007, senior executives were granted stock options and
issued PSUs, under which the senior executives are eligible to receive RSAs or RSUs and unrestricted shares at the end of the
performance period if certain performance targets are achieved. Upon completion of the requisite performance period, the
actual number of shares granted is subject to the approval of the Committee. Each quarter, the Company compares the
performance the Company expects to achieve with the performance targets. As of March 31, 2007, the Company has accrued
compensation cost based on its current expectation of achievement of approximately 85% and 92% of the aggregate targets
for the 1-year and 3-year PSUs, respectively. Compensation cost will continue to be amortized over the requisite service
period of the awards. At the conclusion of the performance periods for the fiscal year 2007 1-year and 3-year PSUs, the
applicable number of shares of RSAs, RSUs or unrestricted stock granted may vary based upon the level of achievement of the
performance targets and the approval of the Committee (which has discretion to reduce any award for any reason). The
related compensation cost recognized will be based on the number of shares granted.
Under the Company’s long-term incentive plan for fiscal year 2006, senior executives were granted stock options and issued
PSUs, under which the senior executives are eligible to receive RSAs or RSUs and unrestricted shares at the end of the
performance period if certain performance targets are achieved. Upon completion of the requisite performance period, the
actual number of shares granted is subject to the approval of the Committee. In the first quarter of fiscal year 2007, the
Committee granted 0.3 million RSAs under the fiscal year 2006 1-year PSU with a weighted average grant date fair value of
$21.88.The 3-year PSUs have not yet been granted. Consequently, each quarter, the Company compares the performance the
Company expects to achieve with the performance targets for the 3-year PSUs. As of March 31, 2007, the Company has
accrued compensation cost based on its current expectation of achievement of approximately 44% of the aggregate targets
for the 3-year PSUs. Compensation cost for the RSAs granted under the 1-year PSUs and the 3-year PSUs will continue to be
amortized over the requisite service period of the awards. At the conclusion of the performance period for the 3-year PSUs, the
number of shares of unrestricted stock issued may vary based upon the level of achievement of the performance targets and
the approval of the Committee (which has discretion to reduce any award for any reason). The related compensation cost
recognized will be based on the number of shares granted.
Stock Purchase Plan
The Company maintains the Year 2000 Employee Stock Purchase Plan (the Purchase Plan) for all eligible employees. The
Purchase Plan is considered compensatory. Under the terms of the Purchase Plan, employees may elect to withhold between
1% and 25% of their base pay through regular payroll deductions, subject to Internal Revenue Code limitations. Shares of the
Company’s common stock may be purchased at six-month intervals at 85% of the lower of the FMV of the Company’s stock
on the first or last day of each six-month period. During fiscal years 2007, 2006, and 2005, employees purchased
approximately 1.5 million, 1.1 million and 0.9 million shares, respectively, at average prices of $17.47, $23.31, and
$23.38 per share, respectively. As of March 31, 2007, approximately 22.5 million shares were reserved for future
issuance under the purchase plan.
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