Apple 2004 Annual Report Download - page 114

Options Exercised and Year
-
End Option Holdings
The following table provides information about stock option exercises by the Named Executive Officers during fiscal year 2004 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)
Number of Securities Underlying
Unexercised Options at Fiscal
Year-End (#)
Value of Unexercised
In-the-Money Options at Fiscal Year-End ($)(1)
Name
Shares
Acquired
on Exercise (#)
Value
Realized
($)
Exercisable Unexercisable Exercisable Unexercisable
Steven P. Jobs
—
—
60,000
(2)
—
$
1,547,400
(2)
$
—
Timothy D. Cook
1,350,000
14,719,950
—
250,000
$
—
$
5,119,375
Ronald B. Johnson
—
—
1,631,250
168,750
$
7,359,188
$
2,426,813
Jonathan J. Rubinstein
1,500,000
26,370,700
650,000
250,000
$
12,985,375
$
5,119,375
Avadis Tevanian, Jr.
350,000
8,828,328
1,800,000
250,000
$
36,652,959
$
5,119,375
Market value of securities underlying in-the-money options at the end of fiscal year 2004 (based on $37.29 per share, the closing price of
Common Stock on the NASDAQ National Market on September 24, 2004), minus the exercise price.
(2) Consists of 60,000 options granted to Mr. Jobs in his capacity as a director pursuant to the 1997 Director Stock Option Plan. In
March 2003, Mr. Jobs voluntarily cancelled all of his outstanding options, excluding those granted to him in his capacity as a director.
Director Compensation
The form and amount of director compensation is determined by the Board after a review of recommendations made by the Nominating
Committee. The current practice of the Board is to base a substantial portion of a director's annual retainer on equity. In 1998, shareholders
approved the 1997 Director Stock Option Plan (the " Director Plan" ) and 800,000 shares were reserved for issuance thereunder. 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" ). The Initial Options vest and become exercisable in three equal annual installments on each of the first through
third anniversaries of the grant date. On the fourth anniversary of a non-employee director's initial election to the Board and on each subsequent
anniversary thereafter, the director will be entitled to receive an option to acquire 10,000 shares of Common Stock (" Annual Options" ). Annual
Options are fully vested and immediately exercisable on their date of grant. As of the end of the fiscal year, there were options for 440,000
shares outstanding under the Director Plan. Since accepting the position of CEO, Mr. Jobs is no longer eligible for grants under the Director
Plan. Non-employee directors also receive a $50,000 annual retainer paid in quarterly increments. In addition, directors receive up to two free
computer systems per year and are eligible to purchase additional equipment at a discount. Directors do not receive any additional consideration
for serving on committees or as committee chairperson.
Compensation Committee Interlocks and Insider Participation
The current members of the Compensation Committee are Messrs. William V. Campbell, Millard S. Drexler, and Albert Gore, Jr., none of whom
are employees of the Company and all of whom are considered "independent" directors under the applicable NASDAQ rules. No person who
was an employee of the Company in fiscal year 2004 served on the Compensation Committee. No executive officer of the Company (i) served as
a member of the compensation committee (or other board committee performing similar functions or, in the absence of any such committee, the
board of directors) of another entity, one of whose executive officers served on the Company's Compensation Committee, (ii) served as a
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