DOW » Topics » Employees Stock Purchase Plans

These excerpts taken from the DOW 10-K filed Feb 19, 2008.

EMPLOYEES' STOCK PURCHASE PLANS

On February 13, 2003, the Board of Directors authorized a 10-year ESPP, which was approved by stockholders at the Company's annual meeting on May 8, 2003. Under each annual offering, most employees are eligible to purchase shares of common stock of the Company valued at up to 10 percent of their annual base earnings. The value is determined using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock is set each year at no less than 85 percent of market price. Approximately 59 percent of the eligible employees enrolled in the annual plan for 2007; approximately 52 percent of the eligible employees enrolled in 2006; and approximately 40 percent enrolled in 2005.


Employees' Stock Purchase Plans 2007
 
        Exercise
Shares in thousands Shares     Price*

Outstanding at beginning of year    
Granted 5,328   $ 30.81
Exercised (4,677 ) $ 30.81
Forfeited/Expired (651 ) $ 30.81

Outstanding and exercisable at end of year    

* Weighted-average per share

Additional Information about ESPPs          
In millions, except per share amounts 2007   2006   2005

Weighted-average fair value per share of purchase rights granted $10.62   $7.83   $6.77

Total compensation expense for ESPPs $57   $34   $19
  Related tax benefit $21   $12   $7

Total amount of cash received from the exercise of purchase rights $145   $101   $135
Total intrinsic value of purchase rights exercised* $65   $15   $41
  Related tax benefit $24   $6   $15

* Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights

EMPLOYEES' STOCK PURCHASE PLANS



On February 13, 2003, the Board of Directors authorized a 10-year ESPP, which was approved by stockholders at the Company's annual meeting on May 8,
2003. Under each annual offering, most employees are eligible to purchase shares of common stock of the Company valued at up to 10 percent of their annual base earnings. The value is determined
using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock is set each year at no less than 85 percent of market price. Approximately
59 percent of the eligible employees enrolled in the
annual plan for 2007; approximately 52 percent of the eligible employees enrolled in 2006; and approximately 40 percent enrolled in 2005.














































































Employees' Stock Purchase Plans2007
 
    Exercise
Shares in thousandsShares  Price*

Outstanding at beginning of year  
Granted5,328 $30.81
Exercised(4,677)$30.81
Forfeited/Expired(651)$30.81

Outstanding and exercisable at end of year  

* Weighted-average per share


























































































Additional Information about ESPPs     
In millions, except per share amounts2007 2006 2005

Weighted-average fair value per share of purchase rights granted$10.62 $7.83 $6.77

Total compensation expense for ESPPs$57 $34 $19
 Related tax benefit$21 $12 $7

Total amount of cash received from the exercise of purchase rights$145 $101 $135
Total intrinsic value of purchase rights exercised*$65 $15 $41
 Related tax benefit$24 $6 $15

* Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights




This excerpt taken from the DOW 10-K filed Feb 20, 2007.

EMPLOYEES' STOCK PURCHASE PLANS

On February 13, 2003, the Board of Directors authorized a 10-year ESPP, which was approved by stockholders at the Company's annual meeting on May 8, 2003. Under each annual offering, most employees are eligible to purchase shares of common stock of the Company valued at up to 10 percent of their annual base earnings. The value is determined using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock is set each year at no less than 85 percent of market price. Approximately 52 percent of the eligible employees enrolled in the annual plan for 2006; approximately 40 percent of the eligible employees enrolled in 2005; and approximately 50 percent enrolled in 2004.


Employees' Stock Purchase Plans   2006

Shares in thousands
    
Shares
    Exercise
Price*

Outstanding at beginning of year      
Granted   4,399   $ 35.21
Exercised   (2,857 )   35.21
Forfeited/Expired   (1,542 )   35.21

Outstanding and exercisable at end of year      

* Weighted-average per share

Additional Information about ESPPs                  
In millions, except per share amounts     2006     2005     2004

Weighted-average fair value per share of purchase rights granted   $ 7.83   $ 6.77   $ 6.94

Total compensation expense for ESPPs     $34     $19     $37
    Related tax benefit     $12     $7     $14

Total amount of cash received from the exercise of purchase rights     $101     $135     $140
Total intrinsic value of purchase rights exercised*     $15     $41     $63
    Related tax benefit     $6     $15     $23

* Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights

93


This excerpt taken from the DOW 8-K filed Jul 11, 2006.

Employees' Stock Purchase Plans

On February 13, 2003, the Board of Directors authorized a 10-year Employees' Stock Purchase Plan, which was approved by shareholders at the Company's annual meeting on May 8, 2003. Prior to that authorization, annual Employees' Stock Purchase Plans were authorized only by the Board of Directors. Under each annual offering, most employees were eligible to purchase shares of common stock of the Company valued at up to 10 percent of their annual base earnings. The value was determined using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock was set each year at no less than 85 percent of market price. Approximately 40 percent of the eligible employees participated in the annual plan in 2005; approximately 50 percent of the eligible employees participated in the preceding two years. Total compensation expense for the Employees' Stock Purchase Plans was $19 million in 2005, $37 million in 2004 and $8 million in 2003.


Employees' Stock Purchase Plans                          
    2005
  2004
  2003
  
Shares in thousands
   
Shares
    Exercise Price*     
Shares
    Exercise Price*    
Shares
    Exercise Price*

Outstanding at beginning of year   2,679   $ 33.95   3,310   $ 27.05   4,709   $ 26.95
Granted   2,956     43.25   4,326     33.95   4,997     27.05
Exercised   (3,659 )   36.85   (4,761 )   29.37   (3,490 )   27.00
Forfeited/Expired   (1,976 )   42.49   (196 )   28.70   (2,906 )   26.95

Outstanding and exercisable at end of year         2,679   $ 33.95   3,310   $ 27.05

Fair value of purchase rights granted during the year       $ 6.77       $ 6.94       $ 5.72

* Weighted-average per share      
This excerpt taken from the DOW 10-Q filed Apr 28, 2006.

Employees’ Stock Purchase Plans

 

Shares in thousands

 

Shares

 

Exercise
Price*

 

Outstanding at January 1, 2006

 

 

 

Granted

 

4,398

 

$

35.21

 

Exercised

 

(3

)

35.21

 

Forfeited/Expired

 

(10

)

35.21

 

Outstanding and exercisable at March 31, 2006

 

4,385

 

$

35.21

 

Fair value of purchase rights granted during the period

 

 

 

$

7.83

 

 


*Weighted-average per share

 

Total compensation expense for ESPPs was $6 million in the first quarter of 2006 ($9 million in the first quarter of 2005) and the related tax benefit was $2 million ($3 million in the first quarter of 2005). Total unrecognized compensation cost related to the ESPPs was $28 million at March 31, 2006 and is expected to be recognized over a weighted-average period of 4.7 months.

 

The total intrinsic value of ESPP shares exercised (i.e., the difference between the market price at exercise and the price paid by the employee), the total amount of cash received from the exercise of these shares, and the actual tax benefit realized from the exercise of ESPP shares were immaterial in the first quarter of 2006. The total intrinsic value of ESPP shares exercised in the first quarter of 2005 was $22 million.

 

17



 

This excerpt taken from the DOW 10-K filed Feb 17, 2006.

Employees' Stock Purchase Plans

On February 13, 2003, the Board of Directors authorized a 10-year Employees' Stock Purchase Plan, which was approved by shareholders at the Company's annual meeting on May 8, 2003. Prior to that authorization, annual Employees' Stock Purchase Plans were authorized only by the Board of Directors. Under each annual offering, most employees were eligible to purchase shares of common stock of the Company valued at up to 10 percent of their annual base earnings. The value was determined using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock was set each year at no less than 85 percent of market price. Approximately 40 percent of the eligible employees participated in the annual plan in 2005; approximately 50 percent of the eligible employees participated in the preceding two years. Total compensation expense for the Employees' Stock Purchase Plans was $19 million in 2005, $37 million in 2004 and $8 million in 2003.


Employees' Stock Purchase Plans                          
    2005
  2004
  2003
  
Shares in thousands
   
Shares
    Exercise Price*     
Shares
    Exercise Price*    
Shares
    Exercise Price*

Outstanding at beginning of year   2,679   $ 33.95   3,310   $ 27.05   4,709   $ 26.95
Granted   2,956     43.25   4,326     33.95   4,997     27.05
Exercised   (3,659 )   36.85   (4,761 )   29.37   (3,490 )   27.00
Forfeited/Expired   (1,976 )   42.49   (196 )   28.70   (2,906 )   26.95

Outstanding and exercisable at end of year         2,679   $ 33.95   3,310   $ 27.05

Fair value of purchase rights granted during the year       $ 6.77       $ 6.94       $ 5.72

* Weighted-average per share      
This excerpt taken from the DOW 10-K filed Feb 18, 2005.

Employees' Stock Purchase Plans

On February 13, 2003, the Board of Directors authorized a 10-year Employees' Stock Purchase Plan, which was approved by shareholders at the Company's annual meeting on May 8, 2003. Prior to that authorization, annual Employees' Stock Purchase Plans were authorized only by the Board of Directors. Under each annual offering, most employees were eligible to purchase shares of common stock of the Company valued at up to 10 percent of their annual base earnings. The value was determined using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock was set each year at no less than 85 percent of market price. Approximately half of the eligible employees participated in the annual plans during the last three years. Total compensation expense for the Employees' Stock Purchase Plans was $37 million in 2004 and $8 million in 2003; no compensation expense was recorded for the Employees' Stock Purchase Plans in 2002.


Employees' Stock Purchase Plans                          
    2004
  2003
  2002
  
Shares in thousands
   
Shares
    Exercise
Price*
    
Shares
    Exercise
Price*
   
Shares
    Exercise
Price*

Outstanding at beginning of year   3,310   $ 27.05   4,709   $ 26.95   4,513   $ 27.45
Granted   4,326     33.95   4,997     27.05   5,047     26.95
Exercised   (4,761 )   29.37   (3,490 )   27.00   (3,406 )   27.43
Forfeited/Expired   (196 )   28.70   (2,906 )   26.95   (1,445 )   27.38

Outstanding and exercisable at end of year   2,679   $ 33.95   3,310   $ 27.05   4,709   $ 26.95

Fair value of purchase rights granted during the year       $ 6.94       $ 5.72       $ 7.73

* Weighted-average per share      
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