McKesson 2006 Annual Report Download - page 17

McKESSON CORPORATION
The following are descriptions of equity plans that have not been submitted for approval by the Company’s stockholders:
On July 27, 2005, the Company’s stockholders approved the 2005 Stock Plan which had the effect of terminating the 1999 Stock Option and
Restricted Stock Plan, the 1998 Canadian Stock Incentive Plan, the Stock Option Plans Adopted in January 1999 and August 1999, which plans
had not been submitted for approval by the Company’s stockholders, and the 1997 Non-Employee Directors’ Equity Compensation and
Deferral Plan, which had previously been approved by the Company’s stockholders. Prior grants under these plans include stock options,
restricted stock and RSUs. Stock options under the terminated plans generally have a ten-year life and vest over four years. Restricted stock
contains certain restrictions on transferability and may not be transferred until such restrictions lapse. Each of these plans has outstanding
equity grants, which are subject to the terms and conditions of their respective plans, but no new grants will be made under these terminated
plans.
1999 Executive Stock Purchase Plan (the “1999 SPP”): The 1999 SPP was adopted by the Board of Directors in February 1999. The 1999
SPP provided for the grant of rights to purchase a maximum of 0.7 million shares of common stock subject to the NYSE limits. No further
grants will be made from the 1999 SPP. Rights to purchase shares were granted under the 1999 SPP to eligible employees of the Company. The
purchase price, to be paid in cash or using promissory notes, for the Company’s common stock subject to rights granted under the 1999 SPP
was equal to the fair market value of the Company’s common stock on the date the right was exercised (which was the closing price of the
Company’s common stock on the NYSE). Purchases were evidenced by written stock purchase agreements which provide for the payment of
the purchase price by (i) payment in cash, or (ii) a promissory note payable on a repayment schedule determined by the Compensation
Committee of the Board, or (iii) a combination of (i) and (ii).
HBOC 1994 UK Sharesave Scheme (the “1994 Scheme”): In connection with the acquisition by the Company of HBO & Company
(“HBOC”), we assumed the HBOC 1994 Scheme, which is similar to the ESPP, under which approximately 0.2 million shares remain available
for issuance. Employees and previous directors of HBOC and its subsidiaries, who are residents of the United Kingdom, are eligible to receive
options under the 1994 Scheme. The exercise price of the stock covered by each option shall not be less than 85% of the fair market value of
the Company’s common stock on the date the option is granted. Participants under the 1994 Scheme pay for options through monthly
contributions, subject to minimum and maximum monthly limits. We no longer offer any new options under the 1994 Scheme.
Information with respect to certain transactions with management is incorporated by reference from the Proxy Statement under the heading
“Certain Relationships and Related Transactions.” Additional information regarding related party transactions is included in the Financial
Review section of this Annual Report on Form 10-K and Financial Note 20, “Related Party Balances and Transactions,” to the consolidated
financial statements.
Information regarding principal accountant fees and services is set forth under the heading “Ratification of Appointment of Deloitte &
Touche LLP as the Company’s Independent Registered Public Accounting Firm for 2007” in our Proxy Statement and all such information is
incorporated herein by reference.
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Item 13. Certain Relationshi
p
s and Related Transactions
Item 14. Princi
p
al Accountant Fees and Services