Cogeco 2011 Annual Report Download - page 70

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Consolidated financial statements COGECO CABLE INC. 2011 69
During the year, subordinate voting shares transactions were as follows:
2011 2010
Number o
f
shares Amount
Number o
f
shares Amount
(in thousands of dollars, except number of shares) $ $
Balance, beginning of year 32,885,337 892,332 32,867,426 891,715
Shares issued for cash under the employee stock option plan 188,319 4,740 17,911 481
Compensation expense previously recorded in contributed surplus for options exercised – 1,255 – 136
Balance, end of year 33,073,656 898,327 32,885,337 892,332
During the year, subordinate voting shares held in trust under the Incentive Share Unit Plan transactions were as follows:
2011 2010
Number o
f
shares Amount
Number o
f
shares Amount
(in thousands of dollars, except number of shares) $ $
Balance, beginning of year 57,409 1,848 – –
Subordinate voting shares acquired 59,503 2,368 62,436 2,008
Subordinate voting shares distributed to employees (13,184) (465) (5,027) (160)
Balance, end of year 103,728 3,751 57,409 1,848
Stock-based plans
The Corporation offers, for the benefit of its employees and those of its subsidiaries, an Employee Stock Purchase Plan and a Stock Option
Plan for certain executives. Under these plans, no more than 10% of the outstanding subordinate voting shares are available. Furthermore, the
Corporation offers an Incentive Share Unit Plan for senior executive and designated employees.
Stock purchase plan
The Corporation offers, for the benefit of its employees and those of its subsidiaries, an Employee Stock Purchase Plan, which has been
modified effective January 1st, 2010. The new plan is accessible to all employees up to a maximum of 7% of their base annual salary and the
Corporation contributes 25% of the employee contributions. The subscriptions are made monthly and employee shares are purchased on the
stock market. Prior to January 1st, 2010, the Plan was accessible to all employees up to a maximum of 5% of their annual salary. The
subscription date was December 31 and the subscription price was based on the average market price of the share of the last five business
days of November less 10%.
Stock option plan
A total of 2,400,000 subordinate voting shares are reserved for the purpose of the Stock Option Plan. The minimum purchase price at which
options are granted is not less than the market value of such shares at the time the option is granted. Options granted after September 1, 2009,
vest equally over a period of five years beginning one year after the day such options are granted and are exercisable over ten years. Prior to
September 1, 2009, options granted vest at the rate of 20% per year beginning the day such options are granted and are exercisable over ten
years, except for conditional stock options granted in 2007, which vested equally over a period of three years beginning one year after the day
such options were granted and are exercisable over ten years. During fiscal year 2011, the Corporation granted 71,090 stock options (66,174 in
2010) with an exercise price of $39.00 to $44.00 ($31.82 to $38.86 in 2010) of which 35,800 stock options (33,266 in 2010) were granted to
COGECO Inc.’s employees.