Adobe 2002 Annual Report Download - page 73

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Market. See the "Report of the Executive Compensation Committee" appearing in the Company's 2003 Proxy
Statement for further information concerning the policies and procedures of the Company and the Executive
Compensation Committee regarding the use of stock options.
Distribution and Dilutive Effect of Options
The table below provides information about stock options granted for 2002, 2001, and 2000 to our Chief
Executive Officer and our four other most highly compensated executive officers as of November 29, 2002, who
will also be identified in our 2003 Proxy Statement. This group is referred to as the Named Executive Officers.
Please refer to the section headed “Executive Options” below for the Named Executive Officers.
Options granted to employees, directors and Named Executive Officers for the fiscal years 2000 through 2002
are summarized as follows:
Employees, Directors and Named Executive Officers Option Grants in 2002, 2001, and 2000 (1)
2002 2001 2000
Net grants during the period as % of outstanding shares........................... 3% 6% 6%
Net grants to Named Executive Officers during the period as % of
total options granted ............................................................................ 21% 11% 15%
Net grants to Named Executive Officers during the period as % of
Outstanding shares............................................................................... 1% 1% 1%
Cumulative options held by Named Executive Officers as % of total
options outstanding.............................................................................. 15% 12% 10%
(1) “Net grants” equals the sum of the number of shares subject to options granted during the specified period reduced by the
number of shares subject to options which were canceled or otherwise terminated during such period. Net grants as a
percentage of outstanding shares is based on 232 million shares, 236 million shares, and 241 million shares of our common
stock outstanding as of November 29, 2002, November 30, 2001 and December 1, 2000, respectively. All options and
outstanding shares referred to in the above table have been adjusted to reflect the two-for-one stock split in the form of a
stock dividend effected October 24, 2000.
During fiscal 2002, we granted options to purchase approximately 12.0 million shares of our stock to our
employees and directors, which was a net grant of approximately 7.0 million options after deducting approximately
5.0 million shares for options canceled. For additional information about our employee stock option plan activity for
the years 2000 through 2002, and pro forma earnings presentation as if we had accounted for our grant of employee
stock options using the fair value method of accounting under Statement of Financial Accounting Standards No. 123
(“SFAS No. 123”), “Accounting for Stock-Based Compensation,” please refer to Note 11 of our Notes to
Consolidated Financial Statements.
For fiscal 2002, options granted to the Named Executive Officers amounted to 21% of the grants made to all
employees and directors. Options granted to the Named Executive Officers as a percentage of the total options
granted to all employees and directors vary from year to year. In 2002, the Named Executive Officers received a
higher percentage of total grants than in other years because, although total grants to the Named Executive Officers
remained relatively the same, overall there were fewer options granted to all employees. For additional information
about the compensation of our executive officers and stock option grants to our Named Executive Officers, please
refer to our 2003 Proxy Statement.