You guys are killing me. Please do the following:
1. go to this link http://moneycentral.msn.com/investor/charts/chartdl.asp?
2. put in the symbol BBT
3. put in "5 years" and refresh screen
4. read the friggin'-fraggin' chart
5. tell the board what your problem is with BBT
6. if you are still confused, add S&P 500 and STI and refresh again
7. say I'm sorry for wrecking this board and MOVE ON TO SOME OTHER STOCK.
I repeat: GODAWMIGHTY!!!!!!!
The following link will direct you to the option grant agreements used for non-employee directors and the one for employees.
The link also explains what criterion is used to determine the amount of LTIP and STIP.
The "Summary of Terms" sets forth how option amounts are calculated and the date that is used to establish the strike price.
If you believe the plan is flawed or unethical and you have standing as a shareholder, please draft an alternative plan and present to BB&T for consideration.
There are avenues available for any shareholder to submit such plans or requests for consideration at the appropriate shareholders meeting.
Fellow shareholders can then review the analysis to consider the plan or request on its relative merits after a full and balanced evaluation.
I do indeed follow what you are saying, but not sure it makes common sense. Not sure, but just do not believe that the SEC rules forbid issuing options at above current market price.
Example: The company pays the executives for year end to year end performance. XYZ company's stock ends the year at $10 which started the year at $8. The executives are then paid on the performance of the company including increasing the share price by $2. The year end figures are not available until Mid-February and the share price has dropped to $6. So the company issues all the executives options at $6. Just does not make any common sense at all.
I know the above is an extreme example, but check the year end and options price on this company for the last few years.
Is there a trend here?
Try to follow this.
Year end numbers aren't available til sometime in January. The Board has to review them against targeted performance and grant the options earned to a lot of people. Takes time because they all have different targets.
The option grant date is always in February for this reason and the close on that predetermined date is the option price.
I suspect the SEC would raise an eyebrow if your suggestion were allowed. I sure as hell would.
Talking about stupid sticks. Did the year end results change just because they were not posted until mid-January?
The year end results are the same and the end of year share price is the same regardless of when it gets posted.
Seems to me if you are basing performance on year end results there might be merit to having options priced at year end. Why should performance be based on year end results and options granted at a lower price? Doesn't make common sense.
Sorry, if that is over your head.
Jim, did someone beat you with a stupid stick? 4th Quarter results were not posted until mid-January. Why should he get the benefits/costs of a Dec 31st stock price when information is not know???? You look at it from the glass is half empty perspective. It could just as well gone the other way. But I know you....negative, negative, negative. Can you just sell your stock that you bought at a 52 week high, take the loss and be done??? Thank you.
What we think, and what we the avg stockholder can do about it is nothing. But none of this is confined to BBandT. All Corps operate in the same manner. Ask Carly Fiorina how shes doing. Can you say World Bank.
The point of the post about options was the fact that if they are based on annual performance as you state then why are they priced below year ending prices?
The year end price was $42.05 and JA's performance is based on year end and then he received 228,260 options which were priced at $38.64.
Let's see that means when the shareholder's stock reaches $42.05 he breaks even, but JA has received a windfall of $ $778,366 when the price gets to $42.05.
Just wondering if the stock holders understand or think this is fair?