This excerpt taken from the UNH DEF 14A filed Apr 7, 2006.
Option Grants in 2005
Individual Grants
Name
Number of Securities Underlying Options Granted
% of Total Options Granted to Employees in 2005
Exercise
or Base
Price ($ / share)
Expiration
Date (1)
Potential Realizable Value at Assumed Annual Rates of Stock Price
Appreciation for Option Term (2)
5% ($)
10% ($)
William W. McGuire
1,300,000
(3)
5.0
45.28
2/3/15
37,019,253
93,814,056
400,000
(3)
1.5
47.34
5/2/15
11,908,749
30,179,107
Stephen J. Hemsley
600,000
(3)
2.3
45.28
2/3/15
17,085,809
43,298,795
250,000
(3)
1.0
47.34
5/2/15
7,442,968
18,861,942
Richard H. Anderson
100,000
(3)
0.4
47.34
5/2/15
2,977,187
7,544,777
65,000
(3)
0.2
57.89
10/31/15
2,366,436
5,997,014
David S. Wichmann
100,000
(3)
0.4
47.34
5/2/15
2,977,187
7,544,777
65,000
(3)
0.2
57.89
10/31/15
2,366,436
5,997,014
David J. Lubben
100,000
(3)
0.4
47.34
5/2/15
2,977,187
7,544,777
50,000
(3)
0.2
57.89
10/31/15
1,820,336
4,613,088
(1)
All options granted in 2005 expire ten years following the date of grant, subject to earlier termination upon certain events related to termination of employment. Options not yet exercisable
generally become exercisable upon a change in control of the Company, as such term is defined in each executive’s employment agreement.
(2)
The “potential realizable value” shown is the potential gain on the last day the option remains exercisable. This value will be achieved only if the options have been held for the
full ten years and the stock price has appreciated at the assumed rate. Potential realizable value is listed for illustration only. The values disclosed are not intended to be, and should not be interpreted as, representations or projections of
future value of our common stock or of the stock price.
(3)
Dr. McGuire’s options become exercisable at the rate of 25% per year over a period of four years, beginning on January 1, 2006. The options of the other named executive
officers become exercisable at the rate of 25% per year on each of the first four anniversaries of the date of grant.
