This excerpt taken from the EQR DEF 14A filed Apr 17, 2006.
OPTION GRANTS FOR 2005
% of Total
Number of
Options
Exercise
Options
Granted to
Price Per
Expiration
Grant Date
Name
Granted
Employees
Share
Date
Present Value
Bruce W. Duncan
289,868
(1)
20.0
%
$39.99
1/2/2016
$1,133,384
(1)
David J. Neithercut
125,003
(2)
8.6
%
42.80
2/3/2016
527,513
(2)
Gerald A. Spector
117,896
(2)
8.1
%
42.80
2/3/2016
497,521
(2)
Alan W. George
59,840
(2)
4.1
%
42.80
2/3/2016
252,525
(2)
Frederick C. Tuomi
45,918
(2)
3.2
%
42.80
2/3/2016
193,774
(2)
(1)
The options awarded on January 3, 2006 for services performed during 2005, were granted at an exercise price equal to the closing price of the common shares on the date of the grant and vested immediately pursuant to Mr. Duncan’s employment agreement. The estimated grant date present value of $3.91 per option was calculated using the modified Black-Scholes option pricing model based on the following assumptions: an estimated time until exercise of 6 years, a volatility of 19.1%, a risk-free interest rate of 4.52% and a dividend yield of 6.05%.
(2)
The options awarded on February 3, 2006 for services performed during 2005, were granted at an exercise price equal to the closing price of the common shares on the date of the grant and vest in equal installments over three years. The estimated grant date present value of $4.22 per option was calculated using the modified Black-Scholes option pricing model based on the following assumptions: an estimated time until exercise of 6 years, a volatility of 19.1%, a risk-free interest rate of 4.52% and a dividend yield of 6.04%.
