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Activision Blizzard (ATVI)
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ATVI » Topics » Limitations on our capacity or ability to issue stock and options may require us to use more cash in our employee compensation packages.

This excerpt taken from the ATVI 10-K filed Jun 14, 2007.

Limitations on our capacity or ability to issue stock and options may require us to use more cash in our employee compensation packages.

 

Our amended and restated certificate of incorporation and our option plans limit the number of shares of our stock and the number of stock options that we can issue. To increase these limits, we must seek and obtain approval of our stockholders. If our stockholders do not approve increases in our available stock and option “pool”, our ability to offer stock and stock options to new and existing employees will be limited. This may in turn impair our ability to recruit and retain employees. It may also require us to place greater reliance on cash compensation, which may not be as attractive to existing and prospective employees. Increased use of cash for employee compensation will also reduce the amount of cash available to us for other uses. Each of these consequences could have negative effects on our business and financial results.

 

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