Symantec 2003 Annual Report Download - page 63

Symantec 2003 61
Stock Option Plans We maintain stock option plans pursuant to which
an aggregate total of approximately 83.0 million shares of common
stock have been reserved for issuance as incentive and nonqualified
stock options to employees, officers, directors, consultants, independ-
ent contractors and advisors to us, or of any parent, subsidiary or affili-
ate of Symantec as the Board of Directors or committee may determine.
The purpose of these plans is to attract, retain and motivate eligible
persons whose present and potential contributions are important to
our success by offering them an opportunity to participate in our future
performance through awards of stock options and stock bonuses. Under
the terms of these plans, the option exercise price may not be less than
100% of the fair market value on the date of grant and the options
have a maximum term of ten years and generally vest over a four-year
period.
In January 2001, the Board of Directors approved the terms of the 2001
Non-Qualified Equity Incentive Plan, under which we grant options to
employees, officers, directors, consultants, independent contractors and
advisors to us, or of any parent, subsidiary or affiliate of Symantec as
the Board of Directors or committee may determine. Options awarded
to insiders, defined as officers, directors or other persons subject to
Section 16 of the Securities Exchange Act of 1934, may not exceed in
the aggregate fifty (50%) percent of all shares that are available for
grant under the plan and employees of the company who are not insid-
ers must receive at least fifty (50%) percent of all shares that are avail-
able for grant under the plan. The terms of this plan are similar to those
of our 1996 Equity Incentive Plan, except that it was adopted, and may
be amended, without stockholder approval. The Board of Directors
reserved 6.0 million shares of common stock for issuance under the
plan. As of March 31, 2003, approximately 1.7 million options were
outstanding under this plan.
In December 2000, as a result of our acquisition of AXENT, we assumed
all outstanding AXENT stock options. Each AXENT stock option assumed
by us is exercisable for one share of Symantec common stock for each
one share of AXENT common stock that was previously subject to the
option, at the same exercise price. Each option is otherwise subject to
the same terms and conditions as the original grant and generally vests
over four years and expires ten years from the date of grant. No further
options may be granted under the AXENT plans. As of March 31, 2003,
approximately 452,000 options were outstanding.
In July 1999, the Board of Directors approved the terms of the 1999
Acquisition Plan. Options awarded to officers may not exceed in the
aggregate thirty (30%) percent of all shares that are available for grant
under the plan. The terms of this plan are similar to those of our 1996
Equity Incentive Plan, except that it was adopted, and may be amended,
without stockholder approval. The Board of Directors reserved 1.0 mil-
lion shares of common stock for issuance under the plan. As of March
31, 2003, approximately 213,000 options were outstanding under this
plan.
In accordance with the employment agreement dated April 11, 1999
between our current CEO and Symantec, the Board of Directors
approved the issuance of a non-qualified stock option to acquire
400,000 shares of common stock to the CEO. The option was granted
at 100% of the fair market value on the date of grant, has a term life
of ten years and vests over a five-year period. As of March 31, 2003, all
400,000 options were outstanding.
On December 20, 1999 a non-qualified option to acquire 40,000 shares
was approved for grant to the CEO and was deemed granted on January
1, 2000. The option was granted at 100% of the fair market value on
the date of grant, has a term life of ten years and vests 25% on the first
anniversary of the date of grant and 2.0833% each month thereafter.
As of March 31, 2003, all 40,000 options were outstanding.
In May 1996, our stockholders approved the 1996 Equity Incentive Plan
and subsequently approved amendments to increase the number of
shares of common stock reserved for issuance under the plan to a total
of approximately 48.9 million shares, including approximately 6.4 mil-
lion, 7.2 million and 4.8 million shares approved on September 12,
2002, September 12, 2001 and December 15, 2000, respectively. As of
March 31, 2003, approximately 20.7 million options were outstanding
under this plan.
As of March 31, 2003, of the approximately 24.6 million shares reserved
under the 1988 Employee Stock Option Plan, which was superseded by
the 1996 Equity Incentive Plan, approximately 111,000 options remain
outstanding. Furthermore, of the 900,000 shares reserved under the
1993 Directors Stock Option Plan, 31,000 options remain outstanding.
No further options may be granted under these plans.
Stock option activity was as follows:
Weighted
Average
Exercise
(IN THOUSANDS, EXCEPT WEIGHTED Number Price Per
AVERAGE EXERCISE PRICE PER SHARE) of Shares Share
Outstanding as of March 31, 2000 20,038 $16.34
Granted 18,334 19.57
Exercised (3,542) 10.30
Canceled (3,102) 20.88
Outstanding as of March 31, 2001 31,728 18.43
Granted 8,450 30.26
Exercised (8,254) 14.56
Canceled (3,140) 20.67
Outstanding as of March 31, 2002 28,784 22.77
Granted 3,548 36.12
Exercised (6,390) 18.92
Canceled (2,323) 26.83
Outstanding as of March 31, 2003 23,619 $25.42