Royal Caribbean Cruise Lines 2003 Annual Report Download - page 30

to certain limitations, the purchase price for each share of com-
mon stock is equal to 90% of the average of the market prices
of the common stock as reported on the New York Stock
Exchange on the first business day of the purchase period and
the last business day of each month of the purchase period.
Shares of common stock of 21,280, 25,649 and 33,395 were
issued under the ESPP at a weighted-average price of $19.56,
$17.34 and $17.69 during 2003, 2002 and 2001, respectively.
Under an executive compensation program approved in 1994, we
will award to a trust 10,086 shares of common stock per quarter,
up to a maximum of 806,880 shares. We issued 40,344 shares
each year under the program during 2003, 2002 and 2001.
Compensation expense related to our “Taking Stock in
Employees” program, which was discontinued effective
December 31, 2001, was $1.6 million in 2001. Under the plan,
employees were awarded five shares of our stock, or the cash
equivalent, at the end of each year of employment.
We have three Employee Stock Option Plans which provide for
awards to our officers, directors and key employees of options
to purchase shares of our common stock. During 2001, two of
the Employee Stock Option Plans were amended to increase
the number of shares reserved for issuance by a total of
13,000,000 shares of common stock between the two plans.
During 2003, one of the Employee Stock Option Plans was
amended to provide for the issuance of restricted stock and
restricted stock units. Each recipient of the restricted stock
units is entitled to receive shares of common stock in accor-
dance with a five-year vesting schedule. Generally, the shares
are forfeited if the recipient ceases to be a director or employ-
ee before the shares vest. We awarded 14,025 restricted stock
units in 2003. Options are granted at a price not less than the
fair value of the shares on the date of grant. Options expire not
later than ten years after the date of grant and generally become
exercisable in full over three or five years after the grant date.
Stock option activity and information about stock options out-
standing are summarized in the following tables:
ROYAL CARIBBEAN CRUISES LTD.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
STOCK OPTION ACTIVITY
2003 2002 2001
Weighted– Weighted– Weighted–
Average Average Average
Number of Exercise Number of Exercise Number of Exercise
Options Price Options Price Options Price
Outstanding options at January 1 15,234,577 $21.63 17,022,241 $21.49 11,291,784 $27.17
Granted 536,991 $25.59 617,600 $20.89 6,525,775 $12.41
Exercised (3,064,355) $14.89 (599,122) $11.10 (104,526) $13.22
Canceled (712,691) $25.72 (1,806,142) $23.61 (690,792) $29.84
Outstanding options at December 31 11,994,522 $23.28 15,234,577 $21.63 17,022,241 $21.49
Exercisable options at December 31 7,949,284 $23.53 7,890,128 $21.82 4,679,421 $20.79
Available for future grants at December 31 6,793,185 6,744,505 5,871,763
STOCK OPTIONS OUTSTANDING
As of December 31, 2003 Outstanding Exercisable
Weighted– Weighted– Weighted–
Number Average Average Number Average
Exercise Price Range of options Remaining Life Exercise Price of options Exercise Price
$ 9.00 - $ 9.90 3,466,803 7.86 years $ 9.81 2,001,753 $ 9.77
$11.19 - $20.30 2,254,822 5.64 years $17.90 1,932,769 $17.72
$21.71 - $28.78 3,426,156 6.28 years $25.67 2,130,812 $25.88
$28.88 - $48.00 2,846,741 5.97 years $41.08 1,883,950 $41.44
11,994,522 6.54 years $23.28 7,949,284 $23.53