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Thursday, February 17, 2011 10:43:29 AM
....."but it seems to me the company would still need to have those add'l 1000 shares authorized and available to sell him, therefore they would have to be accounted for."
You are correct that a company needs to be cognizant of possible available shares needed in the future to take care of employee stock option exercises, vested RSUs, stock bonuses, etc. All these would require the issuance of additional shares of stock. This available stock for future issuance can come from any unissued shares and treasury shares owned. If a company runs out of available shares, then they would need shareholder approval to authorize additional shares, or BoD approval to purchase additional treasury shares in a buyback.
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