Board Happy With Tyco Boss
The awards consist of 160,000 restricted shares, which vest on the third anniversary of the grant date, and 600,000 premium priced stock options with strike prices ranging from $37 to $45, which vest in three equal annual installments beginning on the first anniversary of the grant date. The Board of Directors feels that premium priced stock options provide an effective vehicle to align Mr. Breen’s incentives with shareholder interests. The Compensation Committee of the Board also approved stock option grants for Tyco’s senior executives and other key employees. These shares represent approximately 1 per cent of the company’s total shares outstanding. A successful turnaround in the wake of the Kozlowski affair and a return to profitability by the world’s largest security company has led to the stock rewards.