Southwest Airlines 1995 Annual Report Download - page 36

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36
Information regarding the stock option plans is summarized below:
INCENTIVE NON-QUALIFIED
PLAN PLANS*
Outstanding December 31, 1992 4,016,904 374,625
Granted 724,646 22,512
Exercised **(198,285) ***(94,810)
Surrendered (230,978) (1,050)
Outstanding December 31, 1993 4,312,287 301,277
Granted 794,714 63,918
Exercised (190,159) (9,940)
Surrendered (104,880) -
Outstanding December 31, 1994 4,811,962 355,255
Granted 983,214 14,620,365
Exercised (275,058) (60,510)
Surrendered (308,239) (61,041)
Outstanding December 31, 1995 5,211,879 14,854,069
Exercisable December 31, 1995 889,499 2,892,969
Available for granting in
future periods 2,772,719 3,719,841
Average price of exercised
options:
1995 $8.50 $15.12
1994 $8.23 $7.85
1993 $7.14 $7.37
* includes 1991 Non-Qualified Plan and SWAPA Plan.
** includes 108,113 pre-split shares and 36,115 post-split shares, of which 5,476 pre-split
shares and 72 post-split shares were issued from treasury.
*** includes 12,740 pre-split shares and 75,000 post-split shares.
The exercise price of outstanding options ranged from $6.02 to $37.44 in 1995 and 1994, and
$6.02 to $19.71 in 1993.
In 1991, the Company’s stockholders also approved the Employee Stock Purchase Plan that
provides for the sale of common stock to Employees of the Company at a price equal to 90% of
the market value at the end of each purchase period. Common stock purchases are paid for
through periodic payroll deductions. Participants under the plan received 388,339 shares in
1995, 290,054 shares in 1994, and 182,459 shares (59,442 pre-split shares and 93,296 post-split
shares) in 1993 at average prices of $19.18, $24.98, and $25.25, respectively.
At December 31, 1995, 1994, and 1993, 1,422,253, 1,489,753, and 1,504,753, options to
purchase the Company’s common stock were also outstanding related to employment contracts
with the Company’s president and chief executive officer. Exercise prices range from $1.00 to
$11.33 per share. Options for 67,500 shares, 15,000 shares, and 7,500 shares (5,000 pre-split
shares, of which 968 shares were issued from treasury), were exercised in 1995, 1994, and
1993, respectively.