eBay 2003 Annual Report Download - page 123

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
The following table summarizes additional stock option information related to grants made to our
employees and grants made speciÑcally to named oÇcers, which include our chief executive oÇcer and the
other four most highly compensated oÇcers during the year (in thousands, except percentages):
Year Ended December 31,
2001 2002 2003
Total outstanding shares of common stock
(at year end)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 554,518 622,554 649,293
As a percentage of total outstanding shares of common
stock:
Grants during the year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7% 5% 4%
Total outstanding ""in-the-money'' grants ÏÏÏÏÏÏÏÏÏÏÏÏÏ 10% 10% 11%
Total outstanding grantsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13% 12% 11%
Grants to named oÇcers during the yearÏÏÏÏÏÏÏÏÏÏÏÏÏ 1% 0% 0%
Total outstanding grants to named oÇcers ÏÏÏÏÏÏÏÏÏÏÏ 1% 1% 1%
Total stock option grants during the yearÏÏÏÏÏÏÏÏÏÏÏÏÏ 39,242 33,733 26,694
Grants to named oÇcers during the period as a percent
of total grants during the year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10% 5% 9%
Total outstanding stock option grants ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 70,208 74,357 69,205
Total outstanding grants to named oÇcers as a percent
of total stock option grants outstanding ÏÏÏÏÏÏÏÏÏÏÏÏ 10% 9% 11%
Non-stockholder approved stock option grants
Prior to our initial public oÅering in 1998, our Board of Directors approved three stock option grants
outside of formally approved stockholder plans to two independent directors upon their joining our Board
of Directors and to an executive oÇcer upon his hiring. All of such option grants vested over 25% one year
from the date of grant, with the remainder vesting at a rate of 2.08% per month thereafter and expire
10 years from the date of grant. The options granted to the independent directors were immediately
exercisable, subject to repurchase rights held by us, which lapse over the vesting period. The terms and
conditions of such grants are otherwise identical to nonqualiÑed option grants made under the stock option
plan in eÅect at that time. At the time of such grants, members of our Board of Directors (and their
aÇliates) beneÑcially owned in excess of 90% of our then outstanding voting interests. We have previously
disclosed such option grants in our Prospectus Ñled with the Securities and Exchange Commission on
September 25, 1998 in connection with our initial public oÅering under the headings ""Management Ì
Director Compensation'' and ""Management Ì Compensation Arrangements.'' Prior to 2003, one director
and the executive oÇcer had exercised all available options under their respective grants. At December 31,
2003, one grant remained outstanding to one independent director, with 845,000 shares to be issued upon
exercise of the outstanding options at an average exercise price of $0.78. There were no shares remaining
available under these non-stockholder approved plans for future grants as of December 31, 2003.
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