In granting stock options under the 2013 Equity Plan, the Compensation Committee, based on recommendations from the
CEO, makes subjective evaluations of appropriate award amounts to help attract, retain, reward, and motivate the applicable executive officer based on the scope of the executive officers responsibilities, employment and compensation history
with us, overall compensation arrangements, including outstanding stock option awards held by the executive officer, and long-term potential to enhance stockholder value, all in the context of general economic and industry conditions and Company
performance.
In 2018, pursuant to the 2013 Equity Plan, the Compensation Committee granted stock options to purchase 80,000 shares of our Class A Stock to
Mr. Le, 75,000 shares of our Class A Stock to Ms. Breya, 40,000 shares of our Class A Stock to Mr. Lang, 35,000 shares of our Class A Stock to Mr. Norlin, and 25,000 shares of our Class A Stock to
Mr. Shao on the terms and conditions as described above. In February 2019, pursuant to the 2013 Equity Plan, the Compensation Committee granted a stock option to purchase an additional 20,000 shares of our Class A Stock to Mr. Norlin
on the terms and conditions as described above.
Additionally, several executive officers hold outstanding stock option awards that have been granted in prior
years. Specifically, Mr. Saylor received a stock option to purchase 400,000 shares of our Class A Stock in 2014, Mr. Le received stock options to purchase 40,000 shares of our Class A Stock in each of 2015 and 2017,
Mr. Holdridge received a stock option to purchase 60,000 shares of our Class A Stock in 2017, Mr. Lang received stock options to purchase 50,000 and 30,000 shares of our Class A Stock in 2015 and 2017, respectively, and
Mr. Shao received stock options to purchase 20,000 and 10,000 shares of our Class A Stock in 2014 and 2015, respectively.
We believe that stock option
awards, together with our cash bonus arrangements, as applicable, provide appropriate short and long-term incentives to our executive officers to increase stockholder value through their collective efforts in corporate functions, product design,
engineering, marketing, and sales and services to our customers.
Perquisites and Other Personal Benefits
In 2018, we provided the executive officers with perquisites and other personal benefits that the Compensation Committee and CEO believe are reasonable and
consistent with our overall compensation program. We believe that the cost of these benefits to us is a reasonable use of our resources and we monitor these costs closely in reviewing our compensation program. The Companys payment of these
costs may result in imputed compensation to the executive officers for tax purposes. These benefits are designed to:
|
|
|
allow our executive officers to participate in important Company meetings and other events;
|
|
|
|
allow our executive officers to maintain appropriate levels of visibility and activity in business, professional, and
social circles that may benefit our business, as well as enjoying time with friends and family;
|
|
|
|
allow our executive officers (and in particular, our CEO) to make more productive and efficient use of their time for
Company business and enhance their personal security, in particular during personal travel;
|
|
|
|
allow our executive officers (and in particular, our CEO) to be in communication with the Company and available to
quickly respond to time-sensitive Company matters during personal travel in an environment that allows for confidential communications regarding Company business;
|
|
|
|
promote our executive officers health and well-being; and
|
|
|
|
enhance our ability to retain our executive officers.
|
The Company has a program pursuant to which it arranges for individual disability insurance policies to be provided to eligible executive officers and certain other
senior employees as a supplement to the group disability insurance that is available to most Company employees and pays the premiums with respect to such supplemental policies. In 2018, Messrs. Saylor and Shao were eligible to participate in this
program. Mr. Le, Ms. Breya, Mr. Holdridge, Mr. Lang, and Mr. Norlin were not eligible to participate in this program in 2018.
The
Company has a program pursuant to which it pays the cost of annual healthcare screenings for eligible executive officers. In 2018, all executive officers were eligible to participate in this program.
The Companys executive officers are also eligible to participate in the Companys 401(k) plan, which includes an employer match of up to $3,000 annually,
and group term life insurance plan, each of which is a benefit available to most Company employees.
|
|
|
24
|
|
MICROSTRATEGY
| 2019 Proxy Statement
|