Jack In The Box 2010 Annual Report Download - page 68
Download and view the complete annual report
Please find page 68 of the 2010 Jack In The Box 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.-
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
 |
 |
Table of Contents
We also maintain a deferred compensation plan for non-management directors under which those who are eligible to receive fees or
retainers may choose to defer receipt of their compensation. The deferred amounts are converted to stock equivalents. The plan
requires settlement in shares of our common stock based on the number of stock equivalents at the time of a participant’s separation
from the Board of Directors. This plan provides for the issuance of up to 350,000 shares of common stock in connection with the
crediting of stock equivalents. As of October 3, 2010, 263,424 shares of common stock were available for future issuance under
this plan.
In February 2006, the stockholders of the Company approved an employee stock purchase plan (“ESPP”) for all eligible employees
to purchase shares of common stock at 95% of the fair market value on the date of purchase. Employees may authorize us to
withhold up to 15% of their base compensation during any offering period, subject to certain limitations. A maximum of
200,000 shares of common stock may be issued under the plan. As of October 3, 2010, 143,072 shares of common stock were
available for future issuance under this plan.
Compensation expense The components of share-based compensation expense recognized in each year are as follows
:
Stock options $ 7,234 $ 8,952 $ 7,880
Performance-vested stock awards 1,145 (1,429) 1,381
Nonvested stock awards 923 704 1,034
Nonvested stock units 1,024 830 -
Deferred compensation for directors 279 284 271
Total share-based compensation expense $ 10,605 $ 9,341 $ 10,566
In November 2008, we modified the performance periods and goals of our outstanding performance-vested stock awards to address
challenges associated with establishing long-term performance measures. The modifications and changes to expectations regarding
achievement levels resulted in a $2.2 million reduction in our expense.
Stock options Prior to fiscal 2007, options granted had contractual terms of 10 or 11 years and employee options generally
vested over a four-year period. Beginning fiscal 2007, option grants have contractual terms of 7 years and employee options vest
over a three-year period. Options may vest sooner for employees meeting certain age and years of service thresholds. Options granted
to non-management directors vest at six months. All option grants provide for an option exercise price equal to the closing market
value of the common stock on the date of grant.
The following is a summary of stock option activity for fiscal 2010:
Options outstanding at September 27, 2009 4,788,326 $ 21.31
Granted 550,000 19.26
Exercised (407,452) 12.73
Forfeited (33,417) 22.16
Expired (12,511) 13.05
Options outstanding at October 3, 2010 4,884,946 $ 21.81 4.47 $ 25,606
Options exercisable at October 3, 2010 4,068,523 $ 21.95 4.22 $ 21,483
Options exercisable and expected to vest at October 3, 2010 4,853,860 $ 21.83 4.45 $ 25,411
F-28