Goldman Sachs 2001 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2001 Goldman Sachs annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

page 65 GOLDMAN SACHS ANNUAL REPORT 2001
The activity related to these stock options is set forth below:
WEIGHTED WEIGHTED
AVERAGE AVERAGE
OPTIONS EXERCISE REMAINING
OUTSTANDING PRICE LIFE (YEARS)
Outstanding, November 1998 —$—
Granted 40,863,172 52.91
Exercised ——
Forfeited (503,506) 53.00
Outstanding, November 1999 40,359,666 52.91 9.42
Granted(1) 19,685,230 82.89
Exercised (18,901) 48.13
Forfeited (2,590,237) 52.88
Outstanding, November 2000 57,435,758 63.19 8.96
Granted(1) 29,004,359 91.89
Exercised (104,155) 52.03
Forfeited (1,969,077) 64.46
Outstanding, November 2001 84,366,885 73.04 8.65
Exercisable, November 2001 237,952 $48.13 7.83
(1) Includes stock options granted to employees, subsequent to year end, as part of year-end compensation.
The options outstanding as of November 2001 are set forth below:
WEIGHTED WEIGHTED
AVERAGE AVERAGE
OPTIONS EXERCISE REMAINING
EXERCISE PRICE OUTSTANDING PRICE LIFE (YEARS)
$45.00–$ 59.99 36,395,783 $52.92 7.42
$60.00–$ 74.99 ———
$75.00–$ 89.99 19,101,939 82.88 9.00
$90.00–$104.99 28,869,163 91.90 9.97
84,366,885
The weighted average fair value of options granted during 2001, 2000 and 1999 was $30.82 per option, $28.13 per option and
$16.13 per option, respectively. Fair value was estimated as of the grant date based on a binomial option pricing model using the fol-
lowing weighted average assumptions:
YEAR ENDED NOVEMBER
2001 2000 1999
Risk-free interest rate 5.2% 5.6%6.1%
Expected volatility 35.0 35.0 30.0
Dividend yield 0.5 0.6 1.0
Expected life 7 years 7 years 7 years