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 Transferable
Stock Option (TSO) program is alternative
to traditional option program
- Announced in December 2006
- Test launch in February 2007
- Launched in April 2007
- Employee stock option plan administrator is Smith
Barney
Allows
employees below Executive Management Group to sell vested stock options to
third-party financial institutions
Ongoing
auction with multiple financial institutions rather than one-time
transferable options program
Upon
transfer, option term will be lesser of 2 years and remaining term of original
grant
Participants
realize intrinsic value as well as a portion of remaining time value
- Financial institutions pay premium for options
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