Plantronics 1999 Annual Report Download - page 25

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EMPLOYEE STOCK PURCHASE PLAN
On April 23, 1996 the Board of Directors of the Company approved the 1996 Employee Stock Purchase
Plan, (the “ESPP”) which was approved by the stockholders on August 6, 1996, to provide certain employees
with an opportunity to purchase Common Stock through payroll deductions.The plan is a qualified plan
under applicable IRS guidelines and certain highly compensated employees are excluded from participation.
Under the ESPP, the purchase price of the Common Stock will equal 95% of the market price of the
Common Stock immediately before the beginning of the applicable participation period. Each participation
period is six months long. Once purchased the shares are restricted for six months. During fiscal 1997,
581 shares were issued under the plan.The fair value of the employee’s purchase rights was estimated using
the Black-Scholes model with the following assumptions: dividend yield of 0%, an expected life of six
months, expected volatility of 17%, and risk free interest rate of 6.6%. During fiscal 1998, 2,021 shares were
issued under the plan.The fair value of the employee’s purchase rights was estimated using the Black-Scholes
model with the following assumptions: dividend yield of 0%, an expected life of six months, expected
volatility of 28%, and risk free interest rate of 5.6%.The weighted-average fair value of these purchase rights
granted in fiscal 1998 was $4.85. During fiscal 1999, 2,531 shares were issued under the plan.The fair value
of the employee’s purchase rights was estimated using the Black-Scholes model with the following assump-
tions: dividend yield of 0%, an expected life of six months, expected volatility of 39%, and risk free interest
rate of 4.6%.The weighted-average fair value of these purchase rights granted in fiscal 1999 was $5.92.
SENIOR EXECUTIVE STOCK OWNERSHIP PLAN
In November, 1996 the Board of Directors approved a Senior Executive Stock Purchase Plan, effective
January 1, 1997, to encourage ownership of the Company’s Common Stock by senior executives.This is
a voluntary plan in which executives are encouraged to participate and achieve a target ownership over
a five year period in annual increments of 20% or more.The target ownership is equal to two times the Chief
Executive Officer’s base salary and one times the individual Vice Presidents’base salary. To encourage partici-
pation, the Company will sell the Company’s Treasury Stock to executives under this voluntary purchase
program.The price will be equal to the greater of: 95% of the price set by the Board of Directors on an
annual basis or 85% of the fair market value of the stock on the date of transaction.The various vehicles
that are available to executives to obtain ownership of the Company’s stock are as follows: 401 (k) Plan
contributions, personal IRA account purchases, Deferred Compensation Plan contributions, outright purchase
of stock or exercising and holding vested stock options.The discounted price is not applicable to exercising
and holding of vested stock options.
PLANTRONICS ANNUAL REPORT 1999 page 23
Notes to consolidated financial statements