CBZ » Topics » Stock Options

This excerpt taken from the CBZ 10-K filed Mar 16, 2009.
Stock Options
 
Stock options granted during the years ended December 31, 2008, 2007 and 2006 were generally subject to a 25% incremental vesting schedule over a four-year period commencing from the date of grant. Stock options granted prior to January 1, 2006 were generally subject to a 20% incremental vesting schedule over a five-year period commencing from the date of grant. Stock options expire six years from the date of grant, and are awarded with an exercise price equal to the market value of CBIZ’s common stock on the date of grant.
 
At the discretion of the Compensation Committee of the Board of Directors, options awarded under the plans may vest immediately or in a time period shorter than four years. Under each of the plans, stock options awarded to non-employee directors have generally been granted with immediate vesting.
 
Stock options may be granted alone or in addition to other awards and may be of two types: incentive stock options and nonqualified stock options. In the event the optionee of an incentive stock option owns, at the time such stock option is awarded or granted, more than ten percent of the voting power of all classes of stock of CBIZ, the option price shall not be less than 110% of such fair market value.


F-33


Table of Contents

 
CBIZ, INC. AND SUBSIDIARES
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
Stock option activity during the year ended December 31, 2008 was as follows:
 
                                 
          Weighted
    Weighted
       
          Average
    Average
    Aggregate
 
    Number
    Exercise
    Remaining
    Intrinsic
 
    of Options
    Price Per
    Contractual
    Value
 
    (In thousands)     Share     Term     (In millions)  
 
Outstanding at December 31, 2007
    3,638     $ 5.43                  
Granted
    1,279     $ 8.24                  
Exercised
    (1,135 )   $ 3.61                  
Expired or canceled
    (86 )   $ 6.33                  
                                 
Outstanding at December 31, 2008
    3,696     $ 6.93       3.8 years     $ 6.3  
                                 
Vested and exercisable at December 31, 2008
    1,258     $ 5.69       2.5 years     $ 3.7  
                                 
 
The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2008, 2007 and 2006 was $3.4 million, $3.0 million and $2.5 million, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2008, 2007 and 2006 was $5.7 million, $10.2 million and $11.9 million, respectively. The intrinsic value is calculated as the difference between CBIZ’s stock price on the exercise date and the exercise price of each option exercised.
 
At December 31, 2008, CBIZ had unrecognized compensation cost for non-vested stock options of $5.2 million to be recognized over a weighted average period of approximately 1.8 years.
 
This excerpt taken from the CBZ 10-K filed Mar 17, 2008.
Stock Options
 
Stock options granted in 2007 and 2006 were generally subject to a 25% incremental vesting schedule over a four-year period commencing from the date of grant. Stock options granted prior to 2006 were generally subject to a 20% incremental vesting schedule over a five-year period commencing from the date of grant. Stock options expire six


F-32


 

 
CBIZ, INC AND SUBSIDIARIES
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
years from the date of grant, and are awarded with an exercise price equal to the market value of CBIZ’s common stock on the date of grant.
 
At the discretion of the Compensation Committee of the Board of Directors, options awarded under the plans may vest immediately or in a time period shorter than four years. Under each of the plans, stock options awarded to non-employee directors have generally been granted with immediate vesting. In addition, certain members of executive management have been granted stock options with vesting terms of shorter than four years.
 
Stock options may be granted alone or in addition to other awards and may be of two types: incentive stock options and nonqualified stock options. In the event the optionee of an incentive stock option owns, at the time such stock option is awarded or granted, more than ten percent of the voting power of all classes of stock of CBIZ, the option price shall not be less than 110% of such fair market value.
 
Stock option activity during the year ended December 31, 2007 was as follows:
 
                                 
          Weighted
    Weighted
       
    Number
    Average
    Average
    Aggregate
 
    of
    Exercise
    Remaining
    Intrinsic
 
    Options
    Price Per
    Contractual
    Value
 
    (In thousands)     Share     Term     (In millions)  
 
Outstanding at December 31, 2006
    4,743     $ 3.70                  
Granted
    941     $ 7.56                  
Exercised
    (2,007 )   $ 2.34                  
Expired or canceled
    (39 )   $ 5.30                  
                                 
Outstanding at December 31, 2007
    3,638     $ 5.43       3.0 years     $ 15.9  
                                 
Vested and exercisable at December 31, 2007
    1,726     $ 4.03       1.4 years     $ 10.0  
                                 
 
The weighted-average grant-date fair value of stock options granted during the year ended December 31, 2007, 2006 and 2005 was $3.0 million, $2.5 million and $0.8 million, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2007, 2006 and 2005 was $10.2 million, $11.9 million and $4.6 million, respectively. The intrinsic value is calculated as the difference between CBIZ’s stock price on the exercise date and the exercise price of each option exercised.
 
At December 31, 2007, CBIZ had unrecognized compensation cost for non-vested stock options of $4.2 million to be recognized over a weighted average period of approximately 2.8 years.
 

EXCERPTS ON THIS PAGE:

10-K
Mar 16, 2009
10-K
Mar 17, 2008
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