Dish Network 2008 Annual Report Download - page 125

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-43
Total
Vested
Portion
DISH Network awards held by DISH Network employees............ 49,039$ 12,798$
EchoStar awards held by DISH Network employees...................... 9,957 2,599
Total............................................................................................... 58,996$ 15,397$
2005 LTIP
(In thousands)
2008 LTIP. In December 2008, we adopted a long-term, performance-based stock incentive plan (the “2008
LTIP”) within the terms of our 1999 Stock Incentive Plan. The 2008 LTIP provides stock options and
restricted performance units, either alone or in combination, which vest based on company-specific
subscriber and financial goals. Exercise of the awards is contingent on achieving these goals prior to
December 31, 2015. The 2008 LTIP awards were granted on December 31, 2008 and as a result, no
awards vested and no compensation cost was recognized during 2008. Compensation related to the 2008
LTIP will be recorded based on management’s assessment of the probability of meeting the performance
conditions. If the goals are achieved and all 2008 LTIP awards vest, we will recognize $25 million in non-
cash, stock-based compensation expense over the term of this stock incentive plan.
Of the 21.8 million stock options and 1.5 million restricted stock awards outstanding under our stock
incentive plans as of December 31, 2008, the following awards were outstanding pursuant to the 2005
LTIP and the 2008 LTIP:
Stock Options
Number of
Awards
Weighted-
Average
Exercise Price
2005 LTIP................................... 4,428,250 25.22$
2008 LTIP................................... 5,825,000 11.09$
Total............................................ 10,253,250 17.19$
Restricted Performance Units
2005 LTIP................................... 544,412
2008 LTIP................................... 88,322
Total............................................ 632,734
As of
December 31, 2008
No awards were granted under the 2005 LTIP during the year ended December 31, 2008. As discussed
above, all awards under the 2008 LTIP were granted on December 31, 2008.
Stock-Based Compensation Expense
Total non-cash, stock-based compensation expense for all of our employees is shown in the following table
for the years ended December 31, 2008, 2007, and 2006 and was allocated to the same expense categories
as the base compensation for such employees:
2008 2007 2006
Subscriber-related................................................. 797$ 967$ 879$
Satellite and transmission...................................... - 645 512
General and administrative................................... 14,552 21,404 16,254
Total non-cash, stock based compensation........... 15,349$ 23,016$ 17,645$
For the Years Ended December 31,
(In thousands)