Thursday, February 04, 2010

Document: $15.08 price on new Martore options

The board of directors granted Gracia Martore 100,000 stock options when they named her president and chief operating officer, according to a regulatory filing earlier today that didn't give terms for those options. Now, a second U.S. Securities and Exchange Commission filing discloses those details.

The so-called strike price -- the amount Martore would pay at a later date -- is $15.08 a share, the newest filing shows. That was the stock's closing price on Tuesday, the day the options were awarded. Also, the options become 100% her property -- or "vest" -- in four equal annual installments starting Dec. 11, 2010. Meanwhile, a separate grant of 25,000 restricted stock units vest on Dec. 11, 2013, the document shows. (An RSU is basically a promise to give an individual stock at a later date, assuming certain conditions are met.)

For Martore's new options to have any tangible value, Gannett's stock would need to be trading for more than $15.08 a share by the Dec. 11 exercise date. Today, GCI closed at $13.66 a share, however.

The stock awards were part of an overall annual pay increase: Matore's base pay was bumped up $250,000, to a total $950,000 starting this year. The same document shows that Martore voluntarily gave up $50,000 of that raise -- but for 2010 alone.

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