Merck stock options. View the basic MRK option chain and compare options of Merck & Company, Inc. (new) on Yahoo Finance.

Merck stock options

What are Options?

Merck stock options. Merck announced along with the options that its intention was to “promote ownership in the company, encourage long-term thinking, and link long-term rewards to company performance.” The company recently decided to examine the impact of its stock option program and sent out a survey to its employees in 24 countries.

Merck stock options


The option price shall be payable in cash at the time the Stock Option is exercised. No shares shall be issued until full payment therefore has been made.

A grantee of a Stock Option shall have none of the rights of a stockholder until the shares are issued. The shares covered by a Stock Option may be purchased in such installments and on such exercise dates as the Committee or its delegate may determine.

Any shares not purchased on the applicable exercise date may be purchased thereafter at any time prior to the final expiration of the Stock Option.

Such Stock Option privileges shall expire unless exercised or surrendered under a Stock Appreciation Right within such period of time after the date of termination of employment as may be established by the Committee, but. Upon retirement of a Stock Option grantee, Stock Option privileges shall apply to those shares immediately exercisable at the date of retirement.

The Committee, however, in its discretion, may provide that any Stock Options outstanding but not yet exercisable upon the retirement of a Stock Option grantee may become exercisable in accordance with a schedule to be determined by the Committee.

Stock Option privileges shall expire unless exercised within such period of time as may be established by the Committee, but in no event later than the expiration date of the Stock Option. Upon the death of a Stock Option grantee, Stock Option privileges shall apply to those shares which were immediately exercisable at the time of death.

The Committee, however, in its discretion, may provide that any Stock Options outstanding but not yet exercisable upon the death of a Stock Option grantee may become exercisable in accordance with a schedule to be determined by the Committee. Such privileges shall expire unless exercised by legal representatives within a period of time as determined by the Committee but in no event later than the expiration date of the Stock Option.

Such Stock Options shall be subject to the following terms and conditions and such other terms and conditions as the Committee may prescribe: No shares shall be issued until full payment of the option price has been made. The option prices may be paid in cash or, if the Committee determines, in shares of Common Stock or a combination of cash and shares. If the Committee approves the use of shares of Common Stock as a payment method, the Committee shall establish such conditions as it deems appropriate for the use of Common Stock to exercise a stock option.

The Committee may establish rules and procedures to permit an optionholder to defer recognition of gain upon the exercise of a stock option. The Committee shall determine how and when shares covered by a Stock Option may be purchased.

Such Stock Option privileges shall expire unless exercised or surrendered under a Stock Appreciation Right within such period of time after the date of termination of employment as may be established by the Committee, but in no event later than the expiration date of the Stock Option.

The Committee, however, in its discretion, may provide that any Stock Options outstanding but not yet exercisable upon the retirement of a Stock Option grantee may become exercisable in accordance with a schedule as may be determined by the Committee.

The Committee, however, in its discretion, may provide that any Stock Options outstanding but not yet exercisable upon the death of a Stock Option grantee may become exercisable in accordance with a schedule as may be determined by the Committee. Such privileges shall expire unless exercised by legal representative s within a period of time as determined by the Committee, but in no event later than the expiration date of the Stock Option.

The option price per share with respect to each Stock Option shall be determined by the Committee, but shall not be less than percent of the fair market value of the Parent Common Stock on the date the Stock Option is granted, as determined by the Committee.

The period of each Stock Option shall be fixed by the Committee, provided that the period for all Stock Options shall not exceed ten years from the grant, provided further, however, that, in the event of the death of an Optionee prior to the expiration of a Nonqualified Option, such Nonqualified Option may, if the Committee so determines, be exercisable for up to eleven years from the date of the grant. The Committee may, subsequent to the granting of any Stock Option, extend the term thereof, but in no event shall the extended term exceed ten years from the original grant date.

The option price may be paid in cash or, if the Committee determines, in shares of Parent Common Stock, a combination of cash and shares of Parent Common Stock, or through a cashless exercise procedure that allows grantees to sell immediately some or all of the shares underlying the exercised portion of the Option in order to generate sufficient cash to pay the option price. If the Committee approves the use of shares of Parent Common Stock as a payment method, the Committee shall establish such conditions as it deems appropriate for the use of Parent Common Stock to exercise a Stock Option.

Stock Options awarded under the Plan shall be exercised through such procedure or program as the Committee may establish or define from time to time, which may include a designated broker that must be used in exercising such Stock Options.

The Committee may establish rules and procedures to permit an option holder to defer recognition of gain upon the exercise of a Stock Option. The Committee may accelerate the exercisability of any Stock Option or portion thereof.

Such Stock Option privileges shall expire unless exercised within such period of time after the date of termination of employment as may be established by the Committee, but in no event later than the expiration date of the Stock Option.

Anything in the Plan to the contrary notwithstanding, no dividends or dividend equivalents may be paid on Stock Options. The option price per share with respect to each Stock Option shall be determined by the Committee, but shall not be less than percent of the fair market value of the Common Stock on the date the Stock Option is granted, as determined by the Committee.

The option price may be paid in cash or, if the Committee determines, in shares of Common Stock or a combination of cash and shares of Common Stock. If the Committee approves the use of shares of Common Stock as a payment method, the Committee shall establish such conditions as it deems appropriate for the use of Common Stock to exercise a Stock Option.

The Committee may establish rules and procedures to permit an optionholder to defer recognition of gain upon the exercise of a Stock Option. The exercise price of a stock option grant is set at the fair market value on the grant date. Under the terms of the MSD ISP, New Merck may not grant stock options at a discount to fair market value or reduce the exercise price of outstanding stock options except to avoid loss of participant value in the case of a stock split or other similar event.

Subject to their terms, stock options currently awarded as part of the annual long-term incentive grant process vest in equal installments on the first, second, and third anniversaries of the grant date and expire on the day before the tenth anniversary of the grant date.

This vesting schedule has been used by Old Merck since Stock options enable executives to share in the financial gain derived from the potential appreciation in stock price from the date that the option is granted until the date that the option is exercised.

Under the stockholder-approved Incentive Stock Plan, the Company may not grant stock options at a discount to fair market value or reduce the exercise price of outstanding stock options except to avoid loss of participant value in the case of a stock split or other similar event.

The vesting schedule has been in place since No Backdating or Spring Loading. Merck does not backdate options or grant options retroactively. In addition, we do not intentionally coordinate grants of options so that they are made before announcement of favorable information, or after announcement of unfavorable information. Fair market value is the closing price of a share of Merck common stock on the grant date.

In certain countries, a higher, but not lower, grant price may be used to satisfy provisions of local applicable law. All grants to executive officers require the approval of the Committee. The option price may be paid in cash or, if the Committee determines, in shares of Common Stock, a combination of cash and shares of Common Stock, or through a cashless exercise procedure that allows grantees to sell immediately some or all of the shares underlying the exercised portion of the Option in order to generate sufficient cash to pay the option price.

If any grant is made in excess of the limits provided in the Code, such grant shall automatically become a Nonqualified Option. From the makers of. The period of each Stock Option shall be fixed by the Committee, provided that the period for all Stock Options shall not exceed ten years from the grant; provided further, however, that, in the event of the death of an Optionee prior to the expiration of a Nonqualified Option, such Nonqualified Option may, if the Committee so determines, be exercisable for up to eleven years from the date of the grant.

Stock Options The exercise price of a stock option grant is set at the fair market value on the grant date. Stock Options Stock options enable executives to share in the financial gain derived from the potential appreciation in stock price from the date that the option is granted until the date that the option is exercised.

Because a financial gain from stock options is only possible after the price of Merck common stock has increased, the Company believes grants encourage executives and other employees to focus on behaviors and initiatives that should lead to a sustained long-term increase in the price of Merck common stock, which benefits all Merck stockholders. These dates were chosen to ensure that grants are made shortly after Merck has released information about its financial performance and the streamlined procedure will reduce administrative burdens for Company personnel.

However, the Committee reserves the right to change the time when grants are made, in view of its responsibility to take into account all facts and circumstances so as to ensure that grants are consistent with our compensation philosophy and objectives.

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Nov 4, DEF 14A. Mar 13, DEF 14A.


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