I already explained to you and murderer arsonist Red about stock options and what it means to exercise your stock option.
here read this...or not
Meanwhile, on May 15, 2001, Cheney also signed a second disclosure form that is supposed to update the August 2000 filing so that it covers the full year. In this filing, Cheney disclosed the following Halliburton income:
• Salary/bonus (gross): $821,896
• Elective deferred salary: $403,166
• Stock equivalent unit bonus: $396,213
• Senior executive deferred compensation contributions: $53,692
• Elective deferred salary lump sum payout: $1,140,160
• Restricted stock imputed income: $7,560,000
• Nonqualified stock option income: $21,964,254 ( non-qualified stock option is considered "compensation" and is taxed at ordinary income tax rates. For example, if an employee is granted 100 shares of Stock A at an exercise price of $25, the market value of the stock at the time of exercise is $50. )
• Senior executive deferred compensation payout: $2,797,128