Apple 1999 Annual Report Download - page 73

(2) All options were granted at an exercise price equal to the fair market value based on the closing market value of Common Stock on the
Nasdaq National Market on the date of grant.
(3) Potential gains are net of exercise price, but before taxes associated with exercise. These amounts represent certain assumed rates of
appreciation only, based on SEC rules, and do not represent the Company's estimate or projection of the price of the Company's stock in the
future. Actual gains, if any, on stock option exercises depend upon the actual future price of Common Stock and the continued employment of
the option holders throughout the vesting period. Accordingly, the potential realizable values set forth in this table may not be achieved.
OPTIONS EXERCISED AND YEAR-END OPTION HOLDINGS
The following table provides information about stock option exercises by the Named Executive Officers during fiscal year 1999 and stock
options held by each of them at fiscal year-end.
AGGREGATED OPTION EXERCISES IN THE LAST FISCAL YEAR
AND FISCAL YEAR-END OPTION VALUES
(1) Market value of underlying securities (based on the fair market value of Common Stock on the Nasdaq National Market) at the time of
exercise, minus the exercise price.
(2) Market value of securities underlying in-the-money options at the end of fiscal year 1999 (based on $64.9375 per share, the closing price of
Common Stock on the Nasdaq National Market on September 24, 1999), minus the exercise price.
DIRECTOR COMPENSATION
In 1997, the Company ended its practice of paying cash retainers and fees to directors, and approved the Apple Computer, Inc. 1997 Director
Stock Option Plan (the "DIRECTOR PLAN"). The Director Plan was approved by the shareholders in April 1998, and 400,000 shares have
been reserved for issuance under the Director Plan. Pursuant to the Director Plan, the Company's non-employee directors are granted an option
to acquire 30,000 shares of Common Stock upon their initial election to the Board ("INITIAL OPTIONS"). On the fourth anniversary of a non-
employee director's initial election to the Board and on each subsequent anniversary, the director will be entitled to receive an option to acquire
10,000 shares of Common Stock ("ANNUAL OPTIONS"). Initial Options vest and become exercisable in equal annual installments on each of
the first through third anniversaries of the date of grant. Annual Options are fully vested and immediately exercisable on their date of grant. As
of October 31, 1999, there were options for 180,000 shares outstanding under the Director Plan.
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
The current members of the Board's Compensation Committee are Messrs. Woolard and Chang, neither of whom is an employee of the
Company. No person who was an employee of the Company in fiscal year 1999 served on the Compensation Committee in fiscal year 1999.
During fiscal year 1999, no executive
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NUMBER OF SECURITIES
UNDERLYING UNEXERCISED VALUE OF UNEXERCISED IN-
SHARES OPTIONS AT FISCAL YEAR-END THE-MONEY OPTIONS AT
ACQUIRED ON VALUE (#) FISCAL YEAR-END ($)(2)
EXERCISE REALIZED --------------------------- ---------------------------
NAME (#) ($)(1) EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE
---- ----------- --------- ----------- ------------- ----------- -------------
Steven P. Jobs............... -- -- 20,000 10,000 838,750 419,375
Fred D. Anderson............. 95,834 2,714,134 166,666 829,166 8,614,549 32,622,361
Timothy Cook................. 175,000 3,829,359 0 825,000 0 33,900,000
Mitchell Mandich............. 179,463 5,695,545 31,717 797,979 1,713,719 33,372,127
Jonathan Rubinstein.......... 75,000 2,400,000 66,667 750,000 3,445,851 28,870,298