What was the purpose of the share repurchase from the CEO?

The primary purpose was to satisfy the federal, state, and Medicare tax withholding obligations of CEO Stephen M. Bennett, which arose from the vesting of his restricted stock awards.

At what price did Intuit repurchase the shares from Mr. Bennett?

Intuit repurchased the shares at $41.81 per share, which was the closing price of Intuit's common stock on The Nasdaq Stock Market on February 25, 2005.

How many shares were repurchased, and what was the total cost?

Intuit repurchased 15,945 shares from Mr. Bennett for an aggregate price of $666,660.45.

Are these shares being retired or held in treasury?

The filing indicates the shares were repurchased to satisfy tax withholding obligations. Typically, shares used for tax withholding are retired or cancelled, and not held in treasury. The agreement's primary function was the settlement of tax liabilities rather than a traditional stock buyback for treasury.

INTU 8-K: Material Agreements

Summary

Intuit Inc. (INTU) filed a Form 8-K on February 28, 2005, to disclose a material definitive agreement related to a share repurchase. Specifically, on February 25, 2005, Intuit repurchased 15,945 shares of its common stock from its Chief Executive Officer, Stephen M. Bennett. The repurchase was executed at the closing market price of $41.81 per share, totaling approximately $666,660.45. This transaction was primarily to facilitate the settlement of tax withholding obligations. The repurchased shares were used to cover the federal, state, and Medicare tax liabilities arising from the vesting of 37,500 restricted stock awards granted to Mr. Bennett in January 2000. This action demonstrates Intuit's mechanism for managing executive compensation-related tax burdens.

Key Highlights

1Intuit entered into a Share Repurchase Agreement with CEO Stephen M. Bennett on February 25, 2005.
2The company repurchased 15,945 shares of its common stock from the CEO.
3The repurchase price was $41.81 per share, matching the closing market price on the transaction date.
4The total aggregate repurchase price was $666,660.45.
5The funds were remitted to tax authorities to cover Mr. Bennett's tax withholding obligations.
6These tax obligations stemmed from the vesting of 37,500 restricted stock awards granted in January 2000.

INTUIT INC. 8-K Report, Material Agreement (Feb 28, 2005)

Summary

Key Highlights

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