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492006 | WestJet Annual Report
As at December 31, 2006, the number of common voting shares and variable voting shares amounted to
124,495,951 (2005 – 119,378,637) and 5,152,737 (2005 – 10,196,462) respectively.
(c) Stock Option Plans:
The Corporation has Stock Option Plans, whereby up to a maximum of 12,957,831 common and variable voting
shares may be issued to offi cers and employees of the Corporation subject to the following limitations:
(i) the number of voting shares reserved for issuance to any one optionee will not exceed 5% of the issued
and outstanding common and variable voting shares at any time;
(ii) the number of voting shares reserved for issuance to insiders shall not exceed 10% of the issued and
outstanding common and variable voting shares; and
(iii) the number of voting shares issuable under the Stock Option Plans, which may be issued within a
one-year period, shall not exceed 10% of the issued and outstanding common and variable voting
shares at any time.
Stock options are granted at a price that equals the market value, have a term of four years and vest on
either the fi rst, second or third anniversary from the date of grant.
Changes in the number of options, with their weighted average exercise prices, are summarized below:
2006 2005
Weighted Weighted
Number of average Number of average
options exercise price options exercise price
Stock options outstanding, beginning of year 11,428,718 $ 13.94 10,682,082 $ 12.37
Granted 5,980,660 11.82 4,474,184 14.46
Exercised (433,129) 11.21 (3,506,625) 9.82
Cancelled (332,711) 13.19 (147,309) 14.53
Repurchased — — (66,724) 11.99
Expired (1,597,337) 13.78 (6,890) 13.79
Stock options outstanding, end of year 15,046,201 $ 13.21 11,428,718 $ 13.94
Exercisable, end of year 4,846,236 $ 13.63 3,920,623 $ 12.24
7. Share capital (continued):
(b) Issued and outstanding (continued):
2006 2005
Number Amount Number Amount
Common and variable voting shares:
Balance, beginning of year 129,575,099 $ 429,613 125,497,407 $ 390,469
Exercise of options 73,589 — 1,333,791 3,389
Stock-based compensation
expense on stock options exercised — 1,642 — 488
Issued from treasury (see note 7(e)) — — 2,743,901 35,410
Share issuance costs — (10) — (215)
Tax benefi t of issue costs — 3 — 72
Balance, end of year 129,648,688 $ 431,248 129,575,099 $ 429,613