by: The National Center for Employee Ownership
Source: The National Center for Employee Ownership
Zions First National Bank is taking advantage of a provision in the new stock options accounting standard by selling securities that will pay out as the employee stock options they track are exercised. In late June, the Salt Lake City-based bank auctioned off 93,610 employee stock option appreciation rights, or ESOARS.
The bank used the highest price at which all available units could be sold as the actual sale price, meaning all winning bidders paid the $7.50 per unit cutoff price, which was just less than 10% of parent company Zions Bancorp's opening price on the day of the auction. Bids in the one-day auction run by Zions First National Bank subsidiary Zions Direct ranged from $13.367 per unit to half a cent.
Link: Zions Bancorp
Publication Date: 2007-01-01