|
STOCK OPTIONS AND EMPLOYEE STOCK GRANTS
|
9 Months Ended |
|---|---|
|
Sep. 29, 2012
|
|
| STOCK OPTIONS AND EMPLOYEE STOCK GRANTS [Abstract] | |
| STOCK OPTIONS AND EMPLOYEE STOCK GRANTS |
NOTE 4--STOCK OPTIONS AND EMPLOYEE STOCK GRANTS
On February 9, 2012, the Compensation & Long-Term Incentive Committee of the Board of Directors of the Company approved stock option grants under the Company’s 2011 Plan. A total of 36,740 options, with an exercise price of $11.35 per share, were granted under the Plan to certain management employees of the Company. The exercise price was determined using the average of the high and low stock price on the day prior to the grant date. The per share weighted-average fair value of the stock options granted during 2012 was $5.03. The fair value of the option grant was estimated using the Black-Scholes option-pricing model based on a risk-free interest rate of 2.04 percent, an expected life of seven years, an expected volatility of 53 percent and a dividend yield of 2.10 percent.
On August 21, 2012, a total of 75,000 options, with an exercise price of $12.73, were granted to the President of Palmer of Texas (“Palmer”) pursuant to the Stock Purchase Agreement discussed in Note 9. The exercise price was determined using the average of the high and low stock price on the day prior to the grant date. The per share weighted-average fair value of the stock options granted was $5.44. The fair value of the option grant was estimated using the Black-Scholes option-pricing model based on a risk-free interest rate of 1.80 percent, an expected life of seven years, an expected volatility of 51 percent and a dividend yield of 1.80 percent.
All stock options vest in 20 percent increments annually on a cumulative basis, beginning one year after the date of grant. In order for the options to vest, the employee must be in the continuous employment of the Company since the date of the grant.
On April 27, 2012 the Company issued to each of its non-employee directors 1,598 shares of its common stock from shares held in Treasury (an aggregate of 7,990 shares) in lieu of $20,000 of their annual cash retainer fees.
|