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  • stock optios for 2005

    Iger is getting 274,241 in stock options for this year...

    The estimated price of stock is about $26

    the extended math means that these options are worth $7,182,266...

    I want his job... I think I can do it better than him... And I will do it for the low, low price of $80,000 in stock options...

    :captain: Ah, to be a pirate of the accountan-seas once again... :ap:
    Last edited by cellarhound; 07-01-2005, 11:05 AM. Reason: spelling
    Check out my other blog:

  • #2
    Re: stock optios for 2005

    Not sure if this will help or more complicated but..

    Having a strike price of $26/share means that Bob can buy the stock in the future at $26 dollars... So if the stock goes up $1 - then he would make $274k. If the stock price goes to $36/share - then he would make $2.7 mil. (The difference between the stock price and the strike price.)

    So his incentive is to drive the stock price above the strike price.. (The strike price is usually based on the avg price of the stock over the previous 6-12 months).

    So Bob makes his base salary and then option proceeds (plus any other pure stock grants or benefits) - still a very good chunk of change...

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    • #3
      Re: stock optios for 2005

      Originally posted by laman6
      Not sure if this will help or more complicated but..

      Having a strike price of $26/share means that Bob can buy the stock in the future at $26 dollars... So if the stock goes up $1 - then he would make $274k. If the stock price goes to $36/share - then he would make $2.7 mil. (The difference between the stock price and the strike price.)

      So his incentive is to drive the stock price above the strike price.. (The strike price is usually based on the avg price of the stock over the previous 6-12 months).

      So Bob makes his base salary and then option proceeds (plus any other pure stock grants or benefits) - still a very good chunk of change...
      Mmmm, That supports a buy back, doesn't it?
      Check out my other blog:

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      • #4
        Re: stock optios for 2005

        Well, DIS has to get the stock from somewhere, should Iger exercise the options. Buying them back to reissue is better on the price than simply issuing more stock.
        He's got a long way before he matches Eisner's stock amount.

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