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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Seagate Technology 2004 Stock Compensation Plan —On August 5, 2004, the Company’s board of directors adopted the Seagate
Technology 2004 Stock Compensation Plan (the “2004 Plan”), and on October 28, 2004, the Company’s shareholders approved the 2004 Plan.
The purpose of the 2004 Plan, which is intended to supplement and eventually succeed the Company’s 2001 Plan, is to promote the Company’
s
long-term growth and financial success by providing incentives to its employees, directors, and consultants through grants of stock-based
awards. The provisions of the 2004 Plan, which allows for the grant of various types of equity-based awards, are also intended to provide
greater flexibility to maintain the Company’s competitive ability to attract, retain and motivate participants for the benefit of the Company and
its shareholders. There are 27.5 million shares authorized for issuance under the 2004 Plan, however, no options or other equity-based awards
have been granted under the 2004 Plan through July 1, 2005.
The following is a summary of stock option activity for the Seagate Technology’s option plans:
Options exercisable at the end of fiscal year 2005 were 27,737,168 at a weighted average exercise price of $5.32. Options exercisable at
the end of fiscal year 2004 were 29,085,700 at a weighted average exercise price of $3.56. Options exercisable at the end of fiscal year 2003
were 26,545,585 at a weighted average exercise price of $2.49.
79
Options Outstanding
Number of
Shares
Weighted
Average Price
per Share
Shares
Available for
Future Grants
(number of shares in millions)
Balance June 28, 2002
72.0
$
2.78
25.7
Granted
17.3
10.09
(17.3
)
Exercised
(12.5
)
2.38
—
Cancelled
(3.7
)
3.40
3.7
Balance June 27, 2003
73.1
4.55
12.1
Granted
4.6
22.04
(4.6
)
Exercised
(15.7
)
2.69
—
Cancelled
(1.6
)
5.70
1.6
Balance July 2, 2004
60.4
6.33
9.1
Authorized under 2004 Plan
—
—
27.5
Granted
9.9
14.79
(9.9
)
Exercised
(12.3
)
3.41
—
Cancelled
(1.8
)
10.68
1.8
Balance July 1, 2005
56.2
$
8.32
28.5