5 million of aggregate cash consideration payable to holders of
unexercised options and warrants exercisable for shares of Plaza common stock.
The estimated potential contract value, representing managements estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and
unexercised options, was $24.
All
unexercised options and restricted share units will also be acquired under the arrangement.
Typically, all
unexercised options (whether vested or unvested) lapse.
Figures are for 40-man rosters and include salaries and prorated shares of signing bonuses, earned incentive bonuses, non-cash compensation, buyouts of
unexercised options and cash transactions.
The contract also contains two
unexercised options which, if exercised, would increase the cumulative value to $14,872,292.
In addition, Secure Computing expects to assume all outstanding and
unexercised options to purchase CyberGuard common stock.
The commission recommended that the best way to serve shareholders was to provide transparent, prompt and understandable disclosure of executive compensation and executive equity ownership and the economic impact of such compensation and ownership, including a description of market overhang represented by
unexercised options.
According to BusinessWeek, which counts salary, bonus, exercised options, restricted shares and long-term incentive payments, but not the value of
unexercised options, total average pay for 365 executives of the largest public companies fell by 33 percent to an average take of $7.
Some people say that
unexercised options aren't a cost because they're cashless.
At least Maude will have a basis in the stock options equal to Harold's income, and she eventually will claim a capital loss when the
unexercised options expire.
The generally accepted economic-pricing model for valuing
unexercised options is the Black-Scholes model, which is one of the safe harbor methods approved by the IRS for valuing nonpublicly traded compensatory stock options for gift tax purposes.
