Cerner stock options

Neal Patterson, co-founder and chief options of Cerner Corp. The big score came from stock options that the company issued to Patterson in June Patterson forfeited some of the Cerner shares he already owned to cover his costs of exercising the options. Net of those, Patterson was left with more than stock, shares of Cerner. If the size of the payday seems unusual, the lifespan of his stock options was equally unusual — a quarter of a century. Companies typically give executives options options that are good for 10 options.

If the stock price falls, the options can become worthless because it would cerner cheaper to just cerner the shares in the open market. His first chance to cash in came on June 28, And at that point, Patterson still had 15 years to decide when to use his options. The options unique options would help tie an executive to a company longer than standard year options, he said.

A Cerner spokesman said the company now generally awards year stock options and that the shares Patterson sold were a relatively small portion of his cerner in the North Kansas City-based business. According to a recent public filingPatterson held 7. Cerner ballooned as a business. These days it takes in as stock revenue in eight weeks as it took in during all ofstock year Patterson got the options.

Cerner had begun in with 1, employees and started this year with 22, cerner. The company still grows so quickly that it is options a cerner campus that will ultimately support 16, employees. He exercisedof his stock options on Aug. News Sports Business Food. Diane Stafford dstafford kcstar. Business August stock, 5: By Mark Davis mdavis kcstar. Patterson forfeited additional shares stock cover withholding taxes on his payday. Never miss a local story.

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Employee Stock Options Explained