Business Context and Reporting Period
This Form 8-K Current Report was filed by Constellation Brands, Inc. on April 18, 2007. The report discloses compensatory arrangements for certain officers under the Company's Amended and Restated Long-Term Stock Incentive Plan.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on executive compensation grants.
Material Changes
On April 18, 2007, the Human Resources Committee granted stock options to three executive officers. The exercise price for these options was set at $22.27 per share, equal to the closing price of the Class A Common Stock on the New York Stock Exchange on the grant date.
| Executive Officer | Number of Options Granted | Exercise Price Per Share |
|---|---|---|
| Richard Sands | 16,250 | $22.27 |
| Robert Sands | 16,250 | $22.27 |
| Thomas S. Summer | 16,250 | $22.27 |
Outlook, Risks, and Terms
- Vesting Schedule: Options have a 10-year term. One-fourth of the options vest on each anniversary date from April 18, 2008, through April 18, 2011, contingent on continued employment.
- Change in Control: Options become fully exercisable immediately in the event of a change in control.
- Termination: Options are subject to earlier termination upon certain events related to the termination of employment.
Investor Verification Checklist
- Verify the total number of outstanding options for each named executive officer to assess potential dilution.
- Confirm the current market price of Class A Common Stock relative to the $22.27 exercise price to determine if the options are "in the money."
- Review the Company's Amended and Restated Long-Term Stock Incentive Plan for specific clauses regarding termination and change in control.