Kimberly-Clark's policies and stock option plans require options
to be granted at no less than the closing price of Kimberly-Clark
common stock on the effective date of grant. Kimberly-Clark's
Management Development and Compensation Committee (the
"Committee"), which is composed entirely of independent directors,
administers Kimberly-Clark's executive equity plans. (View
additional information regarding this Committee.)
Annual stock option grants to our elected officers, including
our executive officers, are generally made each year at a meeting
of the Committee that is scheduled at least one year in advance.
However, if the meeting of the Committee at which the grants are
approved occurs during the period beginning on the first day of the
final month of the calendar quarter and ending on the date of the
release of our earnings, the stock option grants will be effective
on the first business day following the release of our
earnings. Our executives are not permitted to choose the grant
date for their individual stock option grants.
The Chairman of the Board and Chief Executive Officer has been
delegated the authority to approve equity grants, including stock
options, to employees who are not elected officers of
Kimberly-Clark. These grants include scheduled annual grants,
which are subject to a limit set by the Committee, and recruiting
and special employee recognition and retention grants, which may
not exceed 200,000 shares in any calendar year. The Chief
Executive Officer is not permitted to make any grants to any of our
elected officers, including our executive officers.
Annual stock option grants to non-elected officers approved by
our Chief Executive Officer are effective on the same date as the
annual stock option grants to elected officers.
Recruiting, special recognition and retention stock option
grants are made on a pre-determined date following the release of
our earnings during each quarter.
