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CVS » Topics » Option Grants for Fiscal Year Ending December 31, 2005

This excerpt taken from the CVS DEF 14A filed Mar 24, 2006.

Option Grants for Fiscal Year Ending December 31, 2005

 

The following table shows the stock options awarded to the named executive officers for fiscal 2005.

 

     Individual Grants
     
Name   

No. of

Securities
Underlying
Options Granted
(#)(1)

    Percentage of
Total Options
Granted to
Employees in
Fiscal Year(2)		     Exercise
Price ($)		    Expiration
Date		    Present Value on
Date of Grant ($)(3)

Thomas M. Ryan

    400,000    6.91 %   22.445    1/5/2012    3,370,920

David B. Rickard

    100,000    1.73     22.445    1/5/2012    842,730

Larry J. Merlo

    100,000    1.73     22.445    1/5/2012    842,730

Chris W. Bodine

    100,000    1.73     22.445    1/5/2012    842,730

Douglas A. Sgarro

    80,000    1.38     22.445    1/5/2012    674,184

 

  (1) Annual stock options become exercisable 33.33% on first, second and third anniversaries of the date of grant. Options granted in 2005 expire seven years from the date of grant.
  (2) Based on options to purchase 5,790,450 shares granted to all employees during 2005.
  (3) The hypothetical present values on grant date are calculated under the modified Black-Scholes Model, which is a mathematical formula used to value options traded on stock exchanges. The formula considers a number of factors in calculating an option’s hypothetical present value. Factors used to value options granted which expire on January 5, 2012 include the stock’s expected volatility rate of 34%, a projected dividend yield of 0.56% and a risk-free rate of return of 4.3%. All grants assume a projected time of exercise of 5.7 years. There is no assurance that the hypothetical present value of the stock options reflected in this table will be realized.

 

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This excerpt taken from the CVS DEF 14A filed Mar 25, 2005.

Option Grants for Fiscal Year Ending January 1, 2005

 

The following table shows the stock options awarded to the named executive officers for fiscal 2004.

 

     Individual Grants
     
Name    No. of
Securities
Underlying
Options Granted
(#)(1)		    Percentage of
Total Options
Granted to
Employees in
Fiscal Year(2)		    Exercise
Price ($)		    Expiration
Date		    Present Value on
Date of Grant ($)(3)

Thomas M. Ryan

    200,000    6.80%    35.335    1/8/2011    2,446,000

David B. Rickard

    50,000    1.70    35.335    1/8/2011    611,500

Larry J. Merlo

    50,000    1.70    35.335    1/8/2011    611,500

Chris W. Bodine

    50,000    1.70    35.335    1/8/2011    611,500

Douglas A. Sgarro

    35,000    1.19    35.335    1/8/2011    428,050

 

  (1) Annual stock options become exercisable 33.33% on first, second and third anniversaries of the date of grant. Options granted in 2004 expire seven years from the date of grant, compared to ten years from the date of grant for options granted in prior years.
  (2) Based on options to purchase 2,940,515 shares granted to all employees during 2004.
  (3) The hypothetical present values on grant date are calculated under the modified Black-Scholes Model, which is a mathematical formula used to value options traded on stock exchanges. The formula considers a number of factors in calculating an option’s hypothetical present value. Factors used to value options granted which expire on January 8, 2011 include the stock’s expected volatility rate of 36.4%, a projected dividend yield of 0.75% and a risk-free rate of return of 3.3%. All grants assume a projected time of exercise of 5 years. There is no assurance that the hypothetical present value of the stock options reflected in this table will be realized.

 

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EXCERPTS ON THIS PAGE:

DEF 14A
Mar 24, 2006
DEF 14A
Mar 25, 2005

RELATED TOPICS for CVS:

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