Apple 2006 Annual Report Download - page 130

AGGREGATED OPTION EXERCISES IN THE LAST FISCAL YEAR
AND FISCAL YEAR-END OPTION VALUES
(1)
Market value of securities underlying in-the-money options at the end of fiscal year 2006 (based on $76.98 per share, the closing price of
Common Stock on the NASDAQ Global Select Market on September 29, 2006), minus the exercise price.
(2) Consists of 120,000 options granted to Mr. Jobs in his capacity as a director pursuant to the 1997 Director Stock Option Plan. Since
accepting the position of CEO, Mr. Jobs is no longer eligible to receive option grants under the Director Plan. In March 2003, Mr. Jobs
voluntarily cancelled all of his outstanding options, excluding those granted to him in his capacity as a director.
(3)
Excludes 600,000 restricted stock units granted to Mr. Cook that are currently unvested, 450,000 restricted stock units granted to each of
Messrs. Oppenheimer and Johnson that are currently unvested, and 400,000 restricted stock units granted to Mr. Schiller that are currently
unvested.
Director Compensation
The form and amount of director compensation are 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 1,600,000 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 760,000 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 $50,000 annual retainer paid in quarterly increments. In addition, directors
receive up to two free computer systems per year and are eligible to purchase additional equipment at a discount. Directors do not receive any
additional consideration for serving on committees or as committee chairperson.
Compensation Committee Interlocks and Insider Participation
The current members of the Compensation Committee are Messrs. Campbell, Drexler and Gore, none of whom are employees of the Company
and all of whom are considered “independent” directors under the applicable NASDAQ rules. There were no interlocks or insider participation
between any member of the Board or Compensation Committee and any member of the board of directors or compensation committee of
another company.
129
Shares
Acquired on
Exercise
Value
Realized
Number of Securities
Underlying
Unexercised
Options at Fiscal
Year
-
End (#)
Value of Unexercised
In-the-Money Options
at Fiscal
Year
-
End ($)(1)
Name
(#)
($)
Exercisable
Unexercisable
Exercisable
Unexercisable
Steven P. Jobs
—
—
120,000
(2)
—
$
8,547,600
(2)
—
Timothy D. Cook
—
—
—
—
(
3)
—
—
Peter Oppenheimer
1,145,000
$
55,851,613
—
—
(
3)
—
—
Ronald B. Johnson
350,000
$
15,653,210
1,900,000
—
(
3)
$
102,994,688
—
Philip W. Schiller
162,500
$
9,454,728
—
—
(
3)
—
—