Autodesk 2012 Annual Report Download - page 40

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34
Prohibition Against Stock Option
Re-pricing
Re-pricing of stock options is prohibited without stockholder approval.
This restriction exists in all of our equity plans, including our 2008
Employee Stock Plan, 2012 Employee Stock Plan, 2010 Outside
Directors’ Stock Plan and 2012 Outside Directors’ Stock Plan.
Non-statutory Stock and Incentive
Stock Options
In general when issuing options, we issue only non-statutory stock
options to employees and executive officers, with the exception of
grants to those executive officers subject to the stock ownership
guidelines described below.
We have limited our use of incentive stock options (ISOs) because of
the heavier financial burden they place on the Company. However,
because ISOs provide special tax advantages to the recipient if the
stock is held for a certain period of time following exercise, we
provide ISOs to certain executive officers to facilitate their meeting
our stock ownership guidelines discussed below. ISOs are granted
to these few individuals only to the extent allowable by applicable
Internal Revenue Code limits. Any excess options are non-statutory
stock options.
Stock Option Grant Exercise Price For fiscal 2012, the exercise price for stock option grants equaled the
fair market value of the Company’s Common Stock on the date of
grant. This is defined as the closing price quoted on the NASDAQ
Global Select Market on the grant date.
Stock Grant Vesting and Expiration All stock options granted in fiscal 2012 vest according to the nature
of the grant and the level of the recipient. All stock options granted
to executive officers in fiscal 2012, expire ten years from the date
of grant.
• Executive Officer and all other vice president stock option
grants (new hire, promotion and performance grants) have
four-year vesting, with one-fourth of the total grant vesting
on each grant anniversary date for four years.
• Other non-vice president stock option grants have three-year
vesting, with one-third of the total grant vesting on each
grant anniversary date for three years.
• Standard new hire stock option grants (50 to 100 shares,
depending on country) vest in full on the one-year
anniversary of the grant date.
Typically, other than “base RSUs” acquired in exchange for cash
otherwise payable under our short-term cash incentive plan, RSUs
granted to our executive officers vest in full on or about the third
anniversary of the grant date.