Option Grants in 1999This table shows options granted to the Named Executive Officers during 1999, along with the present value of the options on the date they were granted, calculated as described in footnote 2 in the table. Grants shown in the table with an expiration date of December 20, 2009, were awarded on December 20, 1999, and related to compensation for the year 2000. The grant shown with an expiration date of January 1, 2009, was awarded to H. J. Padewer on January 1, 1999, the effective date of his employment with Duke Energy. R. B. Priory's option grant with respect to year 2000 compensation was awarded on February 23, 2000, and, accordingly, will be reported in the proxy statement for the 2001 annual meeting.
Option/SAR Grants in Last Fiscal Year
- Duke Energy has not granted any SARs to the Named Executive Officers or any other persons.
- Based on the Black-Scholes option valuation model. The following table lists key input variables used in valuing the options:
250,000 Share Option Input Variable Grant to H.J. Padewer All Other Option Grants Risk-free Interest Rate 5.13% 6.37% Dividend Yield 3.84% 3.95% Stock Price Volatility 17.54% 18.91% Option Term 10 years 10 years
With respect to Mr. Padewer’s 250,000 share option grant, the volatility variable reflected weekly historical stock price trading data with respect to Duke Energy Common Stock from June 18, 1997 (the effective date of the merger with PanEnergy Corp) through December 31, 1998. With respect to all other option grants listed in the table, the volatility variable reflected historical monthly stock price trading data from June 18, 1997 through December 31, 1999. An adjustment was made with respect to each valuation for risk of forfeiture during the vesting period. The actual value, if any, that a grantee may realize will depend on the excess of the stock price over the exercise price on the date the option is exercised, so that there is no assurance the value realized will be at or near the value estimated based upon the Black-Scholes model.
