In The News
Autodesk Plans Big Boost to Its Employee Stock Plan
Design software maker Autodesk Inc.scheduled a special shareholder meeting Jan. 14 for a vote on adding 11.35 million shares to its employee stock plan.
The San Rafael company (NASDAQ: ADSK) set the early shareholder meeting because the pool of shares it uses to pay employees "will be close to depleted by the middle of fiscal 2015." Since Autodesk's fiscal year ends Jan. 31, the middle of fiscal 2015 is the middle of calendar year 2014.
Autodesk's regular shareholder meeting is held in summer, usually in June. That's too late, the company said, to add the extra shares to the existing employee stock program.
Shares in the pool are used to recruit, reward and retain employees. Autodesk tries to buy back shares of its stock in order to offset dilution of value from the issuing of new shares under this program. In the nine months ended October, the company bought back 8.3 million of its own shares.
The new 11.35 million shares would represent about 5.1 percent of Autodesk's total 224.6 million outstanding shares.
Autodesk told its shareholders that paying employees with shares under this program is "critical to our continued success."
Typically, Autodesk pays employees in restricted stock units that vest over three years.
About 7,300 Autodesk workers around the world -- subject to local laws that sometimes prohibit the practice -- are eligible for stock compensation. Of those, about 78 percent have gotten such grants.
Autodesk's board of directors says shareholders should vote for the proposal.
Read details of the proposal here.
« Back to In The News