Cendant to Expense Stock Options

NEW YORK, N.Y. -- Cendant Corp., which owns Avis and is in the process of acquiring Budget Group, announced it will expense future stock option grants beginning Jan. 1, 2003.

The company said it expects to reduce the issuance of stock options for employees in the future and instead use grants of restricted stock. Cendant estimated the prospective per-share expense of its equity compensation programs will be 3 to 4 cents in 2003 and gradually increase over time.

In addition, the Cendant Board of Directors voted to extend Chairman and CEO Henry R. Silverman's contract through 2012 but eliminate his annual stock option grant. Instead, Silverman will receive an incentive bonus tied to Cendant's pre-tax earnings. He won't receive restricted stock.

In 2002, Silverman's reported compensation is expected to drop by more than 50% and is estimated to be approximately $15 million, Cendant said. In comparison, Silverman's reported compensation in 2001 was $36 million.

Silverman, who voluntarily forfeited his annual stock option grant in 2002, is one of Cendant's largest stockholders. He directly owns 8 million shares of Cendant common stock and has options to purchase 36.4 million shares of Cendant common stock.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>