This excerpt taken from the CYMI DEF 14A filed Apr 12, 2006.
The compensation committee approves all stock option grants made to executive officers. In May 2005, our 1996 Stock Option Plan (the 1996 Plan) was terminated following stockholder approval of our 2005 Equity Incentive Plan (the 2005 Plan). Stock option grants made to the named executive officers during 2005 under either plan are set forth in the table Option Grants In Last Fiscal Year. The 2005 Plan is designed to attract, retain and motivate our officers and other participants by providing them with a meaningful stake in our long-term success. In making its determinations, the committee takes into consideration:
grants made to individuals in similar positions in comparable high technology companies;
participants contributions to our performance, both short- and long-term;
prior stock option grants, especially as they relate to the number of options vested and unvested; and
the impact that total option grants made to all participants have on dilution of current stockholder ownership and our earnings.
As a result of the changes in the accounting rules that require us to record an expense to earnings for employee stock options grants, we have changed our equity compensation strategy, which includes a reduction in the number of stock options granted to executive officers. We have developed alternative cash compensation arrangements, such as the 3-Year Bonus Program, to replace a majority of these stock options programs. In general, we grant equity awards to our executive officers only at the commencement of employment. Therefore, we are granting a limited number of stock awards under the 2005 Plan. We implemented our new equity compensation strategy in 2005 and continue to evaluate its effectiveness.
This excerpt taken from the CYMI DEF 14A filed Apr 8, 2005.
During 2004, the compensation committee approved all stock option grants made to executive officers under our 1996 Stock Option Plan ("1996 Plan"). Stock option grants made to the named executive officers during 2004 are set forth in the table "Option Grants In Last Fiscal Year." The 1996 Plan is designed to attract, retain and motivate our officers and other participants by providing them with a meaningful stake in our long-term success. In making its determinations, the compensation committee takes into consideration: