Message-ID: <19711582.1075861701540.JavaMail.evans@thyme> Date: Tue, 6 Mar 2001 16:20:13 -0800 (PST) From: laura.scott@enron.com To: john.lavorato@enron.com Subject: Lavorato Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Scott, Laura X-To: Lavorato, John X-cc: X-bcc: X-Folder: \JLAVORA (Non-Privileged)\Lavorato, John\PERSONAL X-Origin: Lavorato-J X-FileName: JLAVORA (Non-Privileged).pst John, the Compensation + number is the approximate 30% gross-up you were getting on all your paycheques. The Phantom stock taxable benefit is the tax on stock issued in 2000 that was unvested at year-end. The value is calculated as: Units issued 14,415 units US share price on date issued $55.50 Discount on stock price for volatility 33% US share price after discount 37.00 F/X rate 1.4499 Cdn share price $53.65 Value of taxable benefit $773,350.08 John, you need to talk to your tax advisors regarding this stock. When you leave a country you are deemed to dispose of assets at Fair Market Value. I don't know what value would be put on this stock by both the Cdn and US taxation authorities as they had not vested at date of departure. ---------------------- Forwarded by Laura E Scott/CAL/ECT on 03/06/2001 05:07 PM --------------------------- Patricia Henry 03/06/2001 09:05 AM To: Laura E Scott/CAL/ECT@ECT cc: Subject: Lavorato Laura, here is the breakdown for 2000 T4 items: Regular pay 133,212.50 box 14 Bonus 2,177,400.00 box 14 Incentive pay 1,955,917.39 box 14 Sign-on bonus 31,943.40 box 14 Retention bonus 288,560.00 box 14 Com/Ser allowance 2,887.50 box 14 Compensaion+ 957,175.30 box 14 Vacation pay 14,893.36 box 14 Phantom stock t.b. 773,350.08 box 14 & box 38 Co match non-reg 3,632.72 box 14 & box 40 Stock options t.b. 3,220,863.52 box 14 & box 38 AHC family t.b. 340.00 box 14 & box 40 Parking t.b. 1,498.00 box 14 & box 40 Life insur. t.b. 330.00 box 14 & box 40 Dependent life t.b. 7.10 box 14 & box 40 box 14 total 9,562,010.87 Stock optn ded 1,073,513.50 box 39 Pension 7,992.75 box 52 United way 1,375.00 box 46 So as you can see, John did have taxable income of $9mm even though not all of it was actual cash in his pocket. I think that boxes 38 and 40 through most people because they don't realize that those numbers are included in box 14. If you need more info, please let me know. Tricia