APA » Topics » Restricted Stock and Restricted Stock Units

These excerpts taken from the APA 10-K filed Mar 2, 2009.
Restricted Stock and Restricted Stock Units
 
The Company has restricted stock and restricted stock unit plans, including those awarded from the 2007 Plan, that are for all executive officers and certain other key employees. The plans have been approved by Apache’s Board of Directors. The Company awarded 806,396, 399,500 and 149,500 restricted stock units at a per share market price of $135.46, $77.31 and $71.52 in 2008, 2007 and 2006, respectively. The value of the stock issued was established by the market price on the date of grant and is being recorded as compensation expense ratably over the four-year vesting terms. During 2008, 2007 and 2006, $21.3 million ($13.7 million after tax), $8.2 million ($5.3 million after tax) and $6.1 million ($3.9 million after tax), respectively, was charged to expense as shares vested. In 2008 and 2007, $5.9 million and $1.0 million was capitalized, respectively. There were no amounts capitalized in 2006. As of December 31, 2008, there was $103 million of total unrecognized compensation cost related to approximately 1,163,372 unvested shares. The weighted-average remaining life of unvested shares is approximately 3.1 years.
 
                 
          Weighted-Average
 
          Grant-Date
 
Restricted Stock
  Shares     Fair Value  
 
Non-vested at January 1, 2008
    584,850     $ 72.66  
Granted
    806,396       135.46  
Vested
    (189,250 )     70.45  
Forfeited
    (38,624 )     99.25  
                 
Non-vested at December 31, 2008
    1,163,372     $ 115.67  
                 
 
On May 7, 2008, the Stock Option Plan Committee of Apache’s Board of Directors awarded its Chief Executive Officer 250,000 restricted stock units, 50,000 of which will vest on July 1, 2009. The remaining 200,000 shares will vest ratably on the first business day of the years 2010, 2011, 2012 and 2013. Upon vesting, the Company will issue one share of the Company’s common stock as settlement for each restricted stock unit. Thirty thousand of the shares vesting each year will not be eligible for sale by the executive until such time as he retires or otherwise terminates employment with the Company. This award was made under the terms of the Company’s 2007 Omnibus Equity Compensation Plan.
 
In August 2008, the Company established, pursuant to the Company’s 2007 Omnibus Equity Compensation Plan, the Non-Employee Directors’ Restricted Stock Units Program (the RSU Program). Each non-employee director was awarded 1,500 restricted stock units on August 14, 2008 under the RSU Program, with half of the restricted stock units vesting thirty days after the grant and the other half vesting on the one-year anniversary date of the grant. Each year, all non-employee directors will be eligible to receive grants of restricted stock units comparable in value to the 2008 grant. Non-employee directors are required to choose, at the time of each award, whether such award will vest as 100 percent common stock or a combination of 40 percent cash and 60 percent common stock.
 
Restricted
Stock and Restricted Stock Units



 



The Company has restricted stock and restricted stock unit
plans, including those awarded from the 2007 Plan, that are for
all executive officers and certain other key employees. The
plans have been approved by Apache’s Board of Directors.
The Company awarded 806,396, 399,500 and 149,500 restricted
stock units at a per share market price of $135.46, $77.31 and
$71.52 in 2008, 2007 and 2006, respectively. The value of the
stock issued was established by the market price on the date of
grant and is being recorded as compensation expense ratably over
the four-year vesting terms. During 2008, 2007 and 2006,
$21.3 million ($13.7 million after tax),
$8.2 million ($5.3 million after tax) and
$6.1 million ($3.9 million after tax), respectively,
was charged to expense as shares vested. In 2008 and 2007,
$5.9 million and $1.0 million was capitalized,
respectively. There were no amounts capitalized in 2006. As of
December 31, 2008, there was $103 million of total
unrecognized compensation cost related to approximately
1,163,372 unvested shares. The weighted-average remaining life
of unvested shares is approximately 3.1 years.


 



























































































































                 

 

 

 

 

 

Weighted-Average



 

 

 

 

 

 

Grant-Date



 


Restricted Stock


 

Shares

 

 

Fair Value

 
 


Non-vested at January 1, 2008


 

 

584,850

 

 

$

72.66

 


Granted


 

 

806,396

 

 

 

135.46

 


Vested


 

 

(189,250

)

 

 

70.45

 


Forfeited


 

 

(38,624

)

 

 

99.25

 

 

 

 

 

 

 

 

 

 


Non-vested at December 31, 2008


 

 

1,163,372

 

 

$

115.67

 

 

 

 

 

 

 

 

 

 






 



On May 7, 2008, the Stock Option Plan Committee of
Apache’s Board of Directors awarded its Chief Executive
Officer 250,000 restricted stock units, 50,000 of which will
vest on July 1, 2009. The remaining 200,000 shares
will vest ratably on the first business day of the years 2010,
2011, 2012 and 2013. Upon vesting, the Company will issue one
share of the Company’s common stock as settlement for each
restricted stock unit. Thirty thousand of the shares vesting
each year will not be eligible for sale by the executive until
such time as he retires or otherwise terminates employment with
the Company. This award was made under the terms of the
Company’s 2007 Omnibus Equity Compensation Plan.


 



In August 2008, the Company established, pursuant to the
Company’s 2007 Omnibus Equity Compensation Plan, the
Non-Employee Directors’ Restricted Stock Units Program (the
RSU Program). Each non-employee director was awarded 1,500
restricted stock units on August 14, 2008 under the RSU
Program, with half of the restricted stock units vesting thirty
days after the grant and the other half vesting on the one-year
anniversary date of the grant. Each year, all non-employee
directors will be eligible to receive grants of restricted stock
units comparable in value to the 2008 grant. Non-employee
directors are required to choose, at the time of each award,
whether such award will vest as 100 percent common stock or
a combination of 40 percent cash and 60 percent common
stock.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Mar 2, 2009
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