In a move presumably related to his appointment two months ago, Todd McCarty (left) has been granted 50,000 stock options and 31,625 units of restricted stock, potentially worth hundreds of thousands of dollars or more, a regulatory filing today shows. McCarty was appointed senior vice president for human relations in mid-December.
The options become fully his property -- or vest -- in three equal annual installments starting Feb. 12, 2011, according to the filing with the U.S. Securities and Exchange Commission. The so-called strike price -- the amount he would pay the company to buy the shares -- is $10.53 each. Based on today's closing price, $11.10 a share, those options already have a net paper value of nearly $29,000.
The restricted stock units vest on Feb. 12, 2013, and allow McCarty to receive the cash equivalent of 31,625 shares of Class A common stock based on the market value of those shares as of that date. For example, if the market value were the same as today's closing price on the exercise date, McCarty would be entitled to $351,038 from the company.
Class A common are the shares that most employees and average investors trade. The more powerful Class B shares are mostly owned by members of the Ochs-Sulzberger family, allowing them significant control over the board of directors.
Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.