eTrade 1999 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 1999 eTrade annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

57
a price determined by the Board of Directors at the date the option is granted. The options are generally exercisable ratably over a
four-year period from the date the option is granted and expire within ten years from the date of grant.
In July 1996, the shareowners of the Company approved the 1996 Stock Incentive Plan (the "1996 Plan") and reserved 16,000,000
shares of common stock for future grants. Following adoption, no additional grants may be made under any prior plans. The 1996 Plan
is divided into three components: the Discretionary Option Grant Program, the Stock Issuance Program and the Automatic Option
Grant Program. Under the Discretionary Option Grant Program, options may be granted to purchase shares of common stock at an
exercise price not less than the fair market value of those shares on the grant date to eligible associates. The Stock Issuance Program
allows for individuals to be issued shares of common stock directly through the purchase of such shares at a price not less than the fair
market value of those shares at the time of issuance or as a bonus tied to the performance of services. Under the Automatic Option
Grant Program, options are automatically granted at periodic intervals to eligible non-associate members of the Board of Directors to
purchase shares of common stock at an exercise price equal to the fair market value of those shares on the grant date.
During fiscal 1999, two consultants were granted options to purchase 800,000 shares of the Company's common stock at $4.25 per
share. Such options were immediately vested. Accordingly, the Company recorded an expense of $2,200,000 for the estimated fair
value of these options.
A summary of stock option activity follows (in thousands):
Weighted
Number Average
of
Exercise
Shares Price
------
--------
Outstanding at September 30, 1996........................... 26,559 $ 0.82
Granted................................................... 10,874 $ 5.26
Exercised................................................. (7,072) $ 0.23
Canceled.................................................. (4,005) $ 1.74
------ ------
Outstanding at September 30, 1997........................... 26,356 $ 2.73
Granted................................................... 14,863 $ 5.73
Exercised................................................. (3,642) $ 1.41
Canceled.................................................. (2,850) $ 4.27
------ ------
Outstanding at September 30, 1998........................... 34,727 $ 4.03
Granted................................................... 7,736 $10.56
Exercised................................................. (7,608) $ 2.40
Canceled.................................................. (2,034) $ 5.98
------ ------
Outstanding at September 30, 1999........................... 32,821 $ 7.84
====== ======
2002. EDGAR Online, Inc.