Eversource 2001 Annual Report Download - page 44

declared a $0.10 per share quarterly dividend. During the third
quarter of 2001 through the fourth quarter of 2001, NU declared
a $0.125 per share quarterly dividend.
In 2001 and 2000, the ESOP trust issued 546,610 and
572,863 of NU common shares, respectively, to satisfy 401(k)
Savings Plan obligations to employees. As of December 31, 2001
and 2000, the total allocated ESOP shares were 6,401,309 and
5,854,699, respectively, and total unallocated ESOP shares were
4,398,876 and 4,945,486, respectively. The fair market value of
unallocated ESOP shares as of December 31, 2001 and 2000, was
$77.6 million and $119.9 million, respectively.
D. Stock-Based Compensation
Employee Stock Purchase Plan (ESPP): Since July 1998, the NU
system has maintained an ESPP for all eligible employees. Under
the ESPP, shares of NU common stock were purchased at 6-
month intervals at 85 percent of the lower of the price on the first
or last day of each 6-month period. Employees may purchase
shares having a value not exceeding 25 percent of their compensa-
tion at the beginning of the purchase period. During 2000,
employees purchased 199,520 shares at discounted prices ranging
from $17.48 to $18.49. At December 31, 2000, 1,417,156 shares
remained reserved for future issuance under the ESPP. Effective
January 1, 2001, the ESPP was terminated because of the then
pending merger.
In the second quarter of 2001, a new ESPP was adopted by
NU’s Board of Trustees and approved by NU’s shareholders.
Shares under the new ESPP were issued in the first quarter of
2002.
Incentive Plans: The NU system has long-term incentive plans
authorizing various types of share-based awards, including stock
options, to be made to eligible employees and board members.
The exercise price of stock options, as set at the time of grant, is
generally equal to the fair market value per share at the date of
grant. Under the Northeast Utilities Incentive Plan (Incentive
Plan), the number of shares which may be utilized for awards
granted during a given calendar year may not exceed one percent
of the total number of shares of NU common stock outstanding
as of the first day of that calendar year.
Stock option transactions for 1999, 2000 and 2001, including
those options acquired in connection with the Yankee merger, are
as follows:
Exercise Price Per Share
Weighted
Options Range Average
Outstanding December 31, 1998 1,233,678 $ 9.6250 — $ 16.8125 $ 13.5213
Granted 644,123 $ 14.9375 — $ 21.1250 $ 15.2514
Exercised (19,368) $ 16.3125 — $ 16.8125 $ 16.3986
Forfeited (32,177) $ 14.9375 — $ 16.3125 $ 15.8714
Outstanding December 31, 1999 1,826,256 $ 9.6250 — $ 21.1250 $ 14.0585
Granted 669,470 $ 18.4375 — $ 22.2500 $ 18.7029
Yankee merger 10,167 $ 9.3640 — $ 12.6888 $ 10.7653
Exercised (43,750) $ 14.9375 — $ 19.5000 $ 16.0658
Forfeited (28,281) $ 14.9375 — $ 19.5000 $ 16.6515
Outstanding December 31, 2000 2,433,862 $ 9.3640 — $ 22.2500 $ 15.2569
Granted 817,300 $ 17.4000 — $ 21.0300 $ 20.2065
Exercised (108,779) $ 9.3640 — $ 19.5000 $ 16.0970
Forfeited (132,467) $ 14.8750 — $ 21.0300 $ 18.2217
Outstanding December 31, 2001 3,009,916 $ 9.6250 — $ 22.2500 $ 16.4467
Exercisable December 31, 1999 711,787 $ 9.6250 — $ 21.1250 $ 14.0102
Exercisable December 31, 2000 1,298,339 $ 9.3640 — $ 22.2500 $ 14.2021
Exercisable December 31, 2001 1,712,260 $ 9.6250 — $ 22.2500 $ 14.4650
For certain options that were granted in 2001 and 2000, and
for the options that were granted in 1999, the vesting schedule for
these options is ratably over three years from the date of grant.
Other options granted in 2001 and 2000 vest 50 percent at the
date of grant and 50 percent one year from the date of grant.
Also under the Incentive Plan, the NU system awarded 91,120
of restricted shares in 1999. These shares have the same vesting
schedule as the options granted under the Incentive Plan. The
NU system has also made several small grants of restricted stock
and other incentive-based stock compensation. During 2001,
2000 and 1999, $1.2 million, $1.9 million and $2.2 million,
respectively, was expensed for stock-based compensation.
Had compensation cost been determined for the ESPP and the
Incentive Plan stock options under the fair value method as
opposed to the intrinsic value method followed by the NU sys-
tem, net income/(loss) and net income/(loss) per share would
have been as follows:
(Millions of Dollars,
except per share amounts) 2001 2000 1999
Net income/(loss) $239.1 $(33.9) $ 29.6
Basic income/(loss) per
common share $1.76 $(0.24) $ 0.23
Diluted income/(loss)
per common share $1.76 $(0.24) $ 0.22
42
Return to First pageReturn to First pageReturn to HighlightsReturn to HighlightsReturn to Highlights