Iomega Directors OK Stock Split
ROY, Utah (AP) _ Iomega Corp. directors have approved a 2-for-1 stock split that will be distributed to shareholders as a dividend.
The dividend will be distributed on Dec. 22 to shareholders whose names appear on the company stockholder’s list on Dec. 1.
David J. Dunn, chairman of Iomega, said Wednesday the principal reason for the stock split is to increase the number of option shares available to recruit and retain employees.
Iomega’s work force grew from approximately 1,700 on Jan. 1 to 3,700 on Sept. 30, Dunn said.
``The stock split not only gives the company the additional shares that it needs, but also allows the company to make option grants to new employees at levels consistent with its historical grants,″ he said.
Iomega Corp. makes data-storage products for personal computers. Its shares trade on the New York Stock Exchange.