Adobe 2007 Annual Report Download - page 88

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88
As of November 30, 2007, we had reserved 16.0 million shares of our common stock for issuance under the Restricted
Stock Plan and approximately 3.6 million shares were available for grant.
Performance Share Programs
Effective January 24, 2007, the Executive Compensation Committee adopted the 2007 Performance Share Program (the
“2007 Program”). The purpose of the 2007 Program is to align key management and senior leadership with stockholder’ s
interest and to retain key employees. The measurement period for the 2007 Program is our fiscal 2007 year. All members of
our executive management and other key senior leaders are participating in the 2007 Program. Awards granted under the
2007 Program were granted in the form of performance shares pursuant to the terms of our 2003 Plan and our Restricted
Stock Plan. If pre-determined attainment goals are met, shares of stock will be granted to the recipient, with 25% vesting on
the later of the date of certification of achievement or the first anniversary date of the grant, and the remaining 75% vesting
evenly on the following three annual anniversary dates of the grant, contingent upon the recipient’ s continued service to
Adobe. Participants in the 2007 Program have the ability to receive up to 200% of the target number of shares originally
granted, based on the achievement of pre-established performance goals.
Effective February 2, 2006, the Executive Compensation Committee adopted the 2006 Performance Share Program (the
“2006 Program”). The Executive Compensation Committee established the 2006 Program to align the new leadership team to
achieve key integration milestones, create stockholder value and to retain key executives. Members of our executive
management team and other key members of senior management are participating in the 2006 Program, for which the
performance period ran through the end of our fiscal 2007. Awards under the 2006 Program were granted in the form of
performance shares pursuant to the terms of our 2003 Plan and our Restricted Stock Plan. Performance shares will vest 100%
in fiscal 2008 if performance goals are met. Participants in the 2006 Program have the ability to receive up to 150% of the
target number of shares originally granted, based on the achievement of pre-established performance goals.
Issuance of Shares
Upon exercise of stock options or vesting of restricted stock and performance shares, we will issue treasury stock. If
treasury stock is not available, common stock will be issued. In order to minimize the impact of on-going dilution from
exercises of stock options and vesting of restricted stock and performance shares, we instituted a stock repurchase program.
See Note 12 for information regarding our stock repurchase program.
Compensation Costs
Total stock-based compensation costs that have been included in our consolidated statements of income are as follows:
Fiscal 2007:
Income Statement Classifications
Option Grants
and Stock
Purchase Rights
Restricted
Stock and
Performance
Awards
Cost of revenue—services and support ........................ $ 5,152 $ 346
Research and development ........................................... 58,579 9,518
Sales and marketing...................................................... 41,801 6,084
General and administrative........................................... 24,467 4,040
Total ........................................................................... $ 129,999 $ 19,988