Goldman Sachs 2004 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2004 Goldman Sachs annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

notes฀to฀consolidated฀financial฀statements
100฀฀฀GOLDMAN฀ S A C H S ฀ 2 0 0 4฀ANNU A L ฀ R E P O RT
100฀฀฀GOLDMAN฀ S A C H S ฀ 2004฀ A N N U A L ฀ REPORT
STOCK฀OPTIONS
As of November 2004, all stock options granted to employees
in May of 1999 in connection with the firm’s initial public offer-
ing are fully vested and exercisable. Stock options granted to
employees subsequent to the firm’s initial public offering gener-
ally vest as outlined in the applicable stock option agreement
and first become exercisable on the third anniversary of the
grant date. All employee stock option agreements provide that
vesting is accelerated in certain circumstances, such as upon
retirement, death and extended absence. In general, all stock
options expire on the tenth anniversary of the grant date,
although they may be subject to earlier termination or cancella-
tion in certain circumstances in accordance with the terms of
the Amended SIP and the applicable stock option agreement.
The dilutive effect of the firm’s outstanding stock options is
included in “Average common shares outstanding—Diluted,” in
the consolidated statements of earnings.
The activity related to these stock options is set forth below:
฀ ฀ ฀ WEIGHTED฀ WEIGHTED
฀ ฀ ฀ AVERAGE฀ AVERAGE
฀ ฀ OPTIONS฀฀ EXERCISE฀ REMAINING
฀ ฀ OUTSTANDING฀ PRICE฀ LIFE฀(YEARS)
Outstanding, November 2001 84,366,885฀ $73.04฀ 8.65
Granted(1) 15,908,162฀ 79.16
Exercised (1,138,087)฀ 52.78
Forfeited (4,867,859)฀ 68.77
Outstanding, November 2002 94,269,101฀ 74.53฀ 8.08
Granted(1) 902,511฀ 95.81
Exercised (2,686,955)฀ 52.76
Forfeited (3,428,692)฀ 73.08
Outstanding, November 2003 89,055,965฀ 75.47฀ 7.17
Granted 22,500฀96.08
Exercised (9,025,867)฀57.80
Forfeited ฀(1,496,863)฀81.00
Outstanding, November 2004 78,555,735฀77.40฀6.33
Exercisable, November 2004 37,387,049฀$66.48฀5.16
(1)฀Includes฀stock฀options฀granted฀to฀employees฀subsequent฀to฀year฀end฀as฀part฀of฀year-end฀compensation.
The options outstanding as of November 2004 are set forth below:
฀ ฀ ฀ WEIGHTED฀ WEIGHTED
฀ ฀ ฀ AVERAGE฀ AVERAGE
฀ ฀ OPTIONS฀฀ EXERCISE฀ REMAINING
EXERCISE฀PRICE฀ OUTSTANDING฀ PRICE฀ LIFE฀(YEARS)
$45.00– $ 59.99 20,770,884฀ $52.96฀ 4.44
60.00– 74.99 —฀ —฀ —
75.00– 89.99 30,339,112฀ 81.02฀ 6.95
90.00– 104.99 27,445,739฀ 91.89฀ 7.08
Outstanding, November 2004 78,555,735
BES฀•฀Phone฀(201)฀635-5240฀฀•฀FAX฀(201)฀635-5199
BPX/S10829฀•฀Flow฀16฀•฀Proof฀11฀•฀2/4/05฀•฀RUSH