eBay 2004 Annual Report Download - page 125

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
The following table summarizes additional stock option information related to grants made to our
employees and grants made speciÑcally to named oÇcers, which include our chief executive oÇcer and the
other four most highly compensated oÇcers during the year (in thousands, except percentages):
Year Ended December 31,
2002 2003 2004
Total outstanding shares of common stock (at period end) 1,245,108 1,298,586 1,338,608
As a percentage of total outstanding shares of common
stock:
Grants during the period ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5% 4% 3%
Total outstanding ""in-the-money'' grants ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10% 11% 10%
Total outstanding grants ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12% 11% 10%
Grants to named oÇcers during the periodÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * * *
Total outstanding grants to named oÇcers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1% 1% 1%
Total stock option grants during the period ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 67,466 53,388 43,628
Grants to named oÇcers during the period as a percent of
total grants during the period ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5% 9% 7%
Total outstanding stock option grants (at period end) ÏÏÏÏÏ 148,714 138,410 137,208
Total outstanding grants to named oÇcers as a percent of
total stock option grants outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9% 11% 11%
* Less than half of a percentage point
Non-stockholder approved stock option grants
Prior to our initial public oÅering in 1998, our Board of Directors approved three stock option grants
outside of formally approved stockholder plans to two independent directors upon their joining our Board of
Directors and to an executive oÇcer upon his hiring. All of such option grants vested over 25% one year from
the date of grant, with the remainder vesting at a rate of 2.08% per month thereafter and expire 10 years from
the date of grant. The options granted to the independent directors were immediately exercisable, subject to
repurchase rights held by us, which lapse over the vesting period. The terms and conditions of such grants are
otherwise identical to nonqualiÑed option grants made under the stock option plan in eÅect at that time. At
the time of such grants, members of our Board of Directors (and their aÇliates) beneÑcially owned in excess
of 90% of our then outstanding voting interests. We have previously disclosed such option grants in our
Prospectus Ñled with the Securities and Exchange Commission on September 25, 1998 in connection with our
initial public oÅering under the headings ""Management Ì Director Compensation'' and ""Management Ì
Compensation Arrangements.'' Prior to 2004, one director and the executive oÇcer had exercised all available
options under their respective grants. At December 31, 2004, one grant remained outstanding to one
independent director, with 1,690,000 shares to be issued upon exercise of the outstanding options at an average
exercise price of $0.39. There were no shares remaining available under these non-stockholder approved plans
for future grants as of December 31, 2004.
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