XM Radio 2000 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2000 XM Radio 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 53

  • 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

XM SATELLiTE RADiO 2000 Annual Report
(f) Stock-Based Compensation
The Company operates three separate stock option plans, the details of which are described below.
1998 Shares Award Plan
On June 1, 1998, the Company adopted the 1998 Shares Award Plan (the ‘‘Plan’’) under which employees,
consultants, and non-employee directors may be granted options to purchase shares of Class A common stock
of the Company. The Company initially authorized 1,337,850 shares of Class A common stock under the Plan,
which was increased to 2,675,700 in July 1999 and 5,000,000 in May 2000. The options are exercisable in
installments determined by the compensation committee of the Company’s board of directors. The options
expire as determined by the committee, but no later than ten years from the date of grant. On July 8, 1999, the
Company’s board of directors voted to reduce the exercise price of the options outstanding in the shares award
plan from $16.35 to $9.52 per share, which represented the fair value of the stock on the date of repricing.
Transactions and other information relating to the Plan for the year ended December 31, 1999 and 2000 are
summarized below:
Outstanding Options
Number of Weighted-Average
Shares Exercise Price
Balance, December 31, 1997 ............ — $ —
Options granted .............................. 787,297 16.35
Options canceled or expired ............ ——
Options exercised ............................ ——
Balance, December 31, 1998 ............ 787,297 $ 16.35
Options granted .............................. 2,188,988 10.50
Option repricing .............................. (818,339) 16.35
Options canceled or expired ............ (57,786) 13.91
Options exercised ............................ (1,071) 9.52
Balance, December 31, 1999 ............ 2,099,089 $ 10.32
Options granted .............................. 1,176,683 30.21
Options canceled or expired ............ (131,267) 17.01
Options exercised ............................ (48,817) 9.52
Balance, December 31, 2000 ............ 3,095,688 $ 17.61
There were no, 416,294 and 1,136,090 stock options exercisable at December 31, 1998, 1999 and 2000,
respectively. There were 1,615,483 shares available under the plan for future grants at December 31, 2000. At
December 31, 2000, all options have been issued to employees, officers and directors.
FiNANCiALS 2000
41
Options Outstanding Options Exercisable
Weighted-
Average Weighted- Weighted-
Remaining Average Average
Number Contractual Exercise Number Exercise
Exercise Price Outstanding Life Price Excercisable Price
1998 $ 16.35 787,297 9.5 years $ 16.35 —$ 16.35
1999 $ 9.52–$12.00 2,099,089 9.24 years $ 10.32 416,294 $ 9.52
2000 $ 9.52–$12.00 2,120,400 8.26 years $ 10.39 1,110,756 $ 10.06
$ 13.13–$30.50 297,685 9.03 years $ 23.13 5,334 $ 13.13
$ 30.63–$45.44 677,603 9.54 years $ 37.92 20,000 $ 43.69