Waste Management 2008 Annual Report Download - page 131
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Please find page 131 of the 2008 Waste Management 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.Dividends
Our quarterly dividends have been declared by our Board of Directors and paid in accordance with the capital
allocation programs discussed above. The following is a summary of dividends declared and paid each year:
2008 2007 2006
Years Ended December 31,
Cash dividends per common share:
Declared(a) .............................................. $1.08 $0.96 $0.66
Paid................................................... $1.08 $0.96 $0.88
Total cash dividends (in millions):
Declared(a) .............................................. $531 $495 $355
Paid................................................... $531 $495 $476
(a) In 2006, the cash dividend declared amounts excluded the first quarterly dividend for 2006 of $0.22 per share,
which was declared by the Board of Directors in 2005.
In December 2008, we announced that our Board of Directors expects to increase the per share quarterly
dividend from $0.27 to $0.29 for dividends declared in 2009. However, all future dividend declarations are at the
discretion of the Board of Directors, and depend on various factors, including our net earnings, financial condition,
cash required for future business plans and other factors the Board may deem relevant.
15. Stock-Based Compensation
Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan under which employees that have been employed for at least
30 days may purchase shares of our common stock at a discount. The plan provides for two offering periods for
purchases: January through June and July through December. At the end of each offering period, employees are able
to purchase shares of common stock at a price equal to 85% of the lesser of the market value of the stock on the first
and last day of such offering period. The purchases are made through payroll deductions, and the number of shares
that may be purchased is limited by IRS regulations. The total number of shares issued under the plan for the
offering periods in each of 2008, 2007 and 2006 was approximately 839,000, 713,000, and 644,000, respectively.
Including the impact of the January 2009 issuance of shares associated with the July to December 2008 offering
period, approximately 470,000 shares remain available for issuance under the plan.
Our Employee Stock Purchase Plan is “compensatory” under the provisions of SFAS No. 123 (revised 2004),
Share-Based Payment. Accordingly, beginning with our adoption of SFAS No. 123(R) on January 1, 2006 we
recognize compensation expense associated with our employees’ participation in the Stock Purchase Plan. Our
Employee Stock Purchase Plan increased annual compensation expense by approximately $6 million, or $4 million
net of tax, for 2008 and approximately $5 million, or $3 million net of tax, for both 2007 and 2006.
Employee Stock Incentive Plans
Pursuant to our stock incentive plan, we have the ability to issue stock options, stock awards and stock
appreciation rights, all on terms and conditions determined by the Management Development and Compensation
Committee of our Board of Directors.
Since May 2004, all stock-based compensation awards described herein have been made under the Company’s
2004 Stock Incentive Plan, which authorizes the issuance of a maximum of 34 million shares of our common stock.
We currently utilize treasury shares to meet the needs of our equity-based compensation programs under the 2004
Stock Incentive Plan and to settle outstanding awards granted pursuant to previous incentive plans.
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)