Plantronics 2000 Annual Report Download - page 36

EMPLOYEE STOCK PURCHASE PLAN
On April 23, 1996, the Board of Directors of Plantronics approved the 1996 Employee Stock Purchase Plan
(the “ESPP”), which was approved by the stockholders on August 6, 1996, to provide certain employees
with an opportunity to purchase Common Stock through payroll deductions.The plan is a qualified plan
under applicable IRS guidelines and certain highly compensated employees are excluded from participation.
Under the ESPP plan effective through August 1999, the purchase price of the Common Stock was equal
to 95% of the market price of the Common Stock immediately before the beginning of the applicable
participation period and there was a six month holding period requirement for stock purchased. Under the
ESPP plan effective beginning September 1999, the purchase price of the Common Stock will be equal
to 85% of the market price of the Common Stock immediately before the beginning of the applicable
participation period and there is no required holding period. Each participation period is six months long.
During fiscal 1998, 2,021 shares were issued under the plan.The fair value of the employee’s purchase rights
was estimated using the Black-Scholes model with the following assumptions: dividend yield of 0%, an
expected life of six months, expected volatility of 28%, and risk free interest rates of 5.6%.The weighted-
average fair value of these purchase rights granted in fiscal 1998 was $4.85.
During fiscal 1999, 2,531 shares were issued under the plan.The fair value of the employee’s purchase rights
was estimated using the Black-Scholes model with the following assumptions: dividend yield of 0%, an
expected life of six months, expected volatility of 39%, and risk free interest rate of 4.6%.The weighted-
average fair value of these purchase rights granted in fiscal 1999 was $5.92.
During fiscal 2000, 12,731 shares were issued under the plan.The fair value of the employee’s purchase
rights was estimated using the Black-Scholes model with the following assumptions: dividend yield of 0%,
an expected life of six months, expected volatility of 42%, and risk free interest rate of 6.1%.The weighted-
average fair value of these purchase rights granted in fiscal 2000 was $11.39.
SENI OR EXECUTIVE STOCK OWNERSHIP PLAN
In November 1996, the Board of Directors approved a Senior Executive Stock Purchase Plan, effective
January 1, 1997, to encourage ownership of our Common Stock by senior executives.This is a voluntary
plan in which executives are encouraged to participate and achieve a target ownership over a five year
period in annual increments of 20% of target or more.The target ownership is equal to two times the Chief
Executive Officer’s base salary and one times the individual Vice Presidents’base salary.To encourage
participation, we will sell our Treasury Stock to executives under this voluntary purchase program.The price
will be equal to the greater of: 95% of the price set by the Board of Directors on an annual basis or 85%
of the fair market value of the stock on the date of transaction.The various vehicles that are available to
executives to obtain ownership of Plantronics’stock are as follows: 401(k) Plan contributions, personal
IRA account purchases, Deferred Compensation Plan contributions, outright purchase of stock or exercising
and holding vested stock options.The discounted price is not applicable to exercising and holding of
vested stock options.
N OTES TO consolidated financial statements
page 34 PLANTRONI CS ANN UAL REPORT 200 0