eTrade 2002 Annual Report Download - page 157

Table of Contents
Index to Financial Statements
grant date to eligible employees. The Salary Investment Option Grant Program allows executive officers and other highly compensated
employees the opportunity to apply a portion of their base salary to the acquisition of special below-market stock option grants. The Stock
Issuance Program allows for individuals to be issued shares of common stock directly through the purchase of such shares at a price not less
than the fair market value of those shares at the time of issuance or as a bonus tied to the performance of services. The Director Fee Option
Grant Program provides each non-employee Board member the opportunity to apply all or a portion of any annual retainer fee otherwise
payable in cash to the acquisition of a below-market stock option grant. Under the Automatic Option Grant Program, options are automatically
granted at periodic intervals to eligible non-employee members of the Board to purchase shares of common stock at an exercise price equal to
the fair market value of those shares on the grant date. The Salary Investment Option Grant Program and the Director Fee Option Grant
Program were activated for the first time to allow for the granting of such options in fiscal 2001. The Company has also assumed option plans
as a result of acquisitions during the year. No additional grants will be made under these acquired plans.
A summary of stock option activity follows (shares in thousands):
Numberof Shares Weighted Average Exercise Price
Outstanding at September 30, 1999 40,086 $ 7.59
Granted 16,438 $ 20.71
Exercised (9,747 ) $ 4.25
Canceled (6,796 ) $ 15.28
Outstanding at September 30, 2000 39,981 $ 12.50
Granted 9,088 $ 8.20
Exercised (1,131 ) $ 3.22
Canceled (1,751 ) $ 15.28
Outstanding at December 31, 2000 46,187 $ 11.78
Granted 14,281 $ 6.67
Exercised (7,218 ) $ 3.18
Canceled (7,135 ) $ 14.97
Outstanding at December 31, 2001 46,115 $ 11.05
Granted 5,300 $ 7.61
Exercised (2,568 ) $ 4.33
Canceled (7,419 ) $ 13.10
Outstanding at December 31, 2002 41,428 $ 10.66
YearEnded
December31,
ThreeMonths Ended
December 31,
2000
YearEnded
September30,
2000
2002 2001
Options available for grant 20,465 (1) 1,323 15,180 4,261
Options exercisable 27,147 23,231 20,959 16,799
Options exercisable weighted average
exercise price
$ 11.40 $ 11.68 $ 9.62 $ 9.57
(1) Increased to approximately 38.4 million shares on January 1, 2003 under the evergreen provision previously described.
During fiscal 2002, approximately 28,000 stock options were granted below fair market value through the Salary Investment Option Grant
Program. During fiscal 2001, approximately 180,000 stock options were granted below fair market value through the Salary Investment Option
2003. EDGAR Online, Inc.