Plantronics 2001 Annual Report Download - page 29

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During fiscal 2000, 38,193 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 42%,
and risk free interest rate of 6.1%. The weighted-average fair value of these purchase rights
granted in fiscal 2000 was $3.80.
During fiscal 2001, 25,443 shares were issued under the plan. The fair value of the
employee’s purchase rights was estimated using the Black-Scholes model with the follow-
ing assumptions: dividend yield of 0%, an expected life of six months, expected volatility of
86%, and risk free interest rate of 6.1%. The weighted-average fair value of these purchase
rights granted in fiscal 2001 was $8.39.
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
our 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% of target 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 participation, we will sell our Treasury Stock to executives under this volun-
tary 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 Plantronics’ stock are as follows: 401(k) Plan contributions, personal IRA account pur-
chases, 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 2001 Annual Report 25