Baker Hughes 2007 Annual Report Download - page 42

24 Baker Hughes Incorporated
GRANT OF PLAN-BASED AWARDS
This table discloses the actual numbers of stock options and restricted stock awards granted during 2007 and 2006 and the grant
date fair value of these awards. It also captures potential future payouts under the Company’s non-equity and equity incentive plans.
Grants of Plan-Based Awards
Estimated Future All Other All Other
Payouts Under Stock Option
Equity Incentive Awards: Awards: Exercise
Estimated Future Payouts Under Plan Awards for Number Number of or Base Grant Date
Non-Equity Incentive Plan Awards(1) 2007 and 2006 of Shares Securities Price of Fair Value
of Stock Underlying Option of Stock
Threshold Target Maximum Threshold Target Maximum or Units Options Awards and Option
($) ($) ($) (#) (#) (#) (#)(2) (#) ($/Sh)(3) Awards
Name Grant Date 2007 2006 2007 2006 2007 2006
Chad C. Deaton 1/24/2007 $ 270,673 $ 250,481 $ 1,082,692 $ 1,001,923 – (4) – (4) 26,437 42,592 $ 68.54
7/25/2007 $ 703,150 $ 601,250 $ 2,812,600 $ 2,405,000 $ 5,625,200 $ 4,810,000 – – – 55,000 $ 82.28 $ 4,205,953
1/25/2006 25,395 45,887 $ 75.06
7/27/2006 45,887 $ 80.73 $ 4,306,957
Peter A. Ragauss 1/24/2007 $ 135,286 $ 85,313 $ 351,750 $ 341,250 – (4) – (4) 8,221 13,245 $ 68.54
7/25/2007 $ 218,675 $ 196,875 $ 874,700 $ 787,500 $ 1,749,400 $ 1,575,000 – – – 13,245 $ 82.28 $ 1,206,909
4/26/2006 33,659 47,734 $ 75.93
7/27/2006 15,025 $ 80.73 $ 4,178,039
James R. Clark 1/24/2007 $ 170,865 $ 139,230 $ 546,769 $ 557,280 –(4) – (4) 10,695 17,230 $ 68.54
7/25/2007 $ 284,450 $ 250,000 $ 1,137,800 $ 1,000,000 $ 2,275,600 $ 2,000,000 – – – 11,200 $ 82.28 $ 1,412,203
1/25/2006 11,000 20,000 $ 75.06
7/27/2006 20,000 $ 80.73 $ 1,872,060
Alan R. Crain 1/24/2007 $ 112,019 $ 67,575 $ 291,250 $ 270,300 – (4) – (4) 20,872 9,461 $ 68.54
7/25/2007 $ 156,200 $ 137,500 $ 624,800 $ 550,000 $ 1,249,600 $ 1,100,000 – – – 11,471 $ 82.28 $ 1,942,804
1/25/2006 6,000 10,500 $ 75.06
7/27/2006 13,500 $ 80.73 $ 1,085,340
David H. Barr 1/24/2007 $ 103,533 $ 58,413 $ 248,481 $ 233,654 – (4) – (4) 5,078 8,181 $ 68.54
7/25/2007 $ 135,075 $ 103,125 $ 540,300 $ 412,500 $ 1,080,600 $ 825,000 – – – 10,191 $ 82.28 $ 798,101
1/25/2006 4,356 7,870 $ 75.06
7/27/2006 7,870 $ 80.73 $ 738,720
(1) Amounts shown on the first line represent amounts under the Annual Incentive Plan for target value represent the potential payout and Expected Value performance.
If threshold levels of performance are not met, then the payout can be zero. Amounts shown on the second line represent amounts under the Long-Term Performance
Unit plan, which awards are paid in cash.
(2) Amounts shown represent the number of shares granted in 2006 and 2007 for RSAs.
(3) Our practice is that the exercise price for each stock option is the fair market value on the date of grant. Under our long-term incentive program, fair market value is
the closing stock price on the day before the date of grant.
(4) Based upon the terms of the Company’s Annual Incentive Plan, there is no maximum amount; provided that pursuant to the terms of the Annual Incentive Plan,
no individual may receive an amount in excess of $4,000,000 annually. Prior to January 1, 2008, any amounts that exceed 200% of the individual’s threshold amount
were “banked” and paid one half in each of the succeeding years, including interest at market rates earned thereon, provided that the individual remains employed
by the Company.