Microsoft Corp. yesterday gave more details of its plan to let employees sell their otherwise worthless stock options to an investment bank.
The plan, announced in July, is an outgrowth of the company's decision to compensate employees in part with actual shares of stock, ending its legendary practice of giving them options to buy shares.
The company filed a registration statement with the Securities and Exchange Commission to allow JP Morgan Chase to sell up to 635 million Microsoft shares at up to $27.83 a share, after acquiring the options to buy those shares from Microsoft employees. Microsoft said it would put the proceeds from the sale of the options to JP Morgan. Microsoft then would initially pay 33 percent to employees and give them the remainder, plus interest, if they remain with the company for a specified period time.
News source: Seattlepi.com