December 4, 1997 |
In the single biggest payday for an executive in history, Walt Disney Chairman Michael Eisner on Wednesday exercised stock options at a profit of about $565 million that he had accumulated as head of the entertainment giant. Eisner exercised options for 7.3 million shares of stock that he has been accumulating since they were awarded him in contract negotiations in January 1989. The huge value reflects in part a Disney stock that has soared lately.
September 18, 1998 |
Ciena Corp. said its board repriced employee stock options to $12.38 a share, days after plans for Tellabs Inc. to acquire the firm were called off because of the company's woes. Shares in Linthicum, Md.-based Ciena, the No. 1 maker of equipment that boosts phone network capacity, have fallen 87% since July. Effective immediately, the repricing applies to all employee stock options with an exercise price above $12.38, Ciena's Wednesday closing price.
August 13, 1999 |
U.S. accounting regulators dropped a plan that would have forced companies to deduct from earnings the value of stock options given to outside directors. The Financial Accounting Standards Board proposed the change earlier this year because it saw the directors as independent contractors who were being paid for their services. Corporations argued that outside directors, elected by shareholders, act more like employees.
December 20, 2000 |
The Internal Revenue Service said it will delay requiring companies to track employee stock options after payroll managers complained they didn't have enough time to comply. The IRS said it gave all companies that distribute stock options until 2002 instead of 2001 to begin segregating that income from total wages on W-2 forms. The agency still faces a challenge over whether it even has the authority to mandate the change, which it ordered in November without explanation.
May 16, 2001 |
Cisco Systems Inc. said it set the price for new employee stock options at $18.57, Monday's closing price, after a 77% plunge from the stock's record high made many options worthless. Chief Executive John Chambers said in March that he planned to issue additional options as an incentive for workers to remain with firm. Shares of San Jose-based Cisco rose 17 cents to close at $18.74 on Nasdaq. They set a record of $82 on March 27, 2000.
July 6, 2006 |
Shares of Marvell Technology Group fell $3.53, or nearly 8%, to $41.31 on Wednesday after the semiconductor designer said authorities requested documents related to its granting of stock options. In a filing with the Securities and Exchange Commission, Marvell said that SEC officials have requested documents and that it has also received a grand jury subpoena from the U.S. attorney's office in Northern California for similar information. The Santa Clara, Calif.
April 4, 1993
Dan Akst's article, "Silicon Valley Fears Narrower Pay Options Will Deter Highfliers" (March 16), uses the story of excessive compensation of a CEO to argue for a major accounting change regarding stock options. However, the proper use of employee stock options can provide the motivation that generates both growth and profit. Employee options are a win-win game. If the stock rises, the shareholders are happy to share some of their gain with the employees who caused the success.
February 12, 1997 |
Intel Corp., aglow with record revenue and profit, is sharing the wealth. The world's largest maker of computer chips said it will grant potentially lucrative stock options to virtually all its nearly 50,000 employees. About a quarter of San Jose-based Intel's work force was eligible previously for stock options, which means employees can buy a certain number of shares at a set price. In the last year, the company's stock has skyrocketed from about $60 a share to above $150.
February 14, 1985 |
The Securities and Exchange Commission on Wednesday gave the New York Stock Exchange permission to begin trading in options on individual stocks. The exchange has been trading options on a composite index, based on more than 1,500 stocks listed on the New York exchange, since September, 1983. It added two other index options last year and applied to the SEC for approval to begin trading individual stock options.
March 2, 2000 |
Labor Department officials will tell Congress today that lawmakers must provide the solution to a quirk in labor law that might imperil lucrative stock options for millions of hourly workers. "The Department of Labor supports the use of stock option plans which allow workers to obtain a stake in their employer's growth, prosperity and profits," Labor Secretary Alexis M. Herman said in a statement to be released today.