Johnson and Johnson Employees

JNJ

The 2011 Annual Report does not explicitly outline Johnson & Johnson's executive compensation agreements.

The company does report in general terms on its options plans. This report is found in page 54 of the 2011 Annual Report, under Section 17. The options details are as follows:

Stock Options

Stock options expire 10 years from the date of grant and vest over service periods that range from six months to four years. All options are granted at the average of the high and low prices of the Company's Common Stock on the New York Stock Exchange on the date of grant. Under the 2005 Long-Term Incentive Plan, the Company may issue up to 260 million shares of common stock. Shares available for future grants under the 2005 Long-Term Incentive Plan were 104.9million at the end of 2011. The Company settles employee stock option exercises with treasury shares. Treasury shares are replenished throughout the year for the number of shares used to settle employee stock option exercises. The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatility represents a blended rate of 4-year daily historical average volatility rate, and a 5-week average implied volatility rate based on at -- the money traded Johnson & Johnson options with a life of 2 years. Historical data is used to determine the expected life of the option. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant. The average fair value of options granted was $7.47, $8.03 and $8.35, in 2011, 2010, and 2009, respectively. The fair value was estimated based on the weighted average assumptions of:

2011 2010 2009

Risk-free rate 2.41% 2.78% 2.71%

Expected volatility 18.2% 17.4% 19.5%

Expected life 6.0 yrs 6.0 yrs 6.0 yrs

Dividend yield 3.60% 3.30% 3.30%

A summary of option activity under the Plan as of January 1, 2012,

January 2, 2011 and January 3, 2010 and changes during the years ending on those dates is presented below:

Weighted Aggregate

Outstanding Average Intrinsic Value

(Shares in Thousands) Shares Exercise Price (Dollars in Millions)

Shares at December 28, 2008 215,499 $58.14 $597

Options granted 21,576 58.32

Options exercised (18,225) 50.97

Options canceled/forfeited (6,131) 61.85

Shares at January 3, 2010 212,719 58.66 1,310

Options granted 13,996 62.62

Options exercised (25,020) 51.84

Options canceled/forfeited (8,005) 62.36

Shares at January 2, 2011 193,690 59.68 648

Options granted 9,530 62.21

Options exercised (20,160) 56.65

Options canceled/forfeited (3,601) 62.38

Shares at January 1, 2012 179,459 $60.10 $1,004

The total intrinsic value of options exercised was $167million,

$278million and $184million in 2011, 2010 and 2009, respectively.

The following table summarizes stock options outstanding and exercisable at January 1, 2012:

(Shares in Thousands) Outstanding Exercisable

Average Average

Exercise Average Exercise

Price Range Options Life (1) Price Options Price

$27.57-$49.86-93 1.4 $46.53-93 $46.53

$50.52-$52.80-17,586 1.1-52.20-17,567 52.20

$53.00-$57.30-35,004 1.3-55.19-35,004 55.19

$57.44-$58.34-36,660 5.5-58.33-18,389 58.34

$58.42-$65.10-39,951 7.3-62.14-16,943 61.77

$65.62-$68.37-50,165 3.8-65.97-50,130 65.97

179,459 4.2 $60.10-138,126 $59.94

Stock options exercisable at January 2, 2011 and January 3, 2010

were 141,275 at an average price of $59.25 and an average life of

4.7 years and 148,349 at an average price of $57.26 and an average

life of 5.0 years, respectively.

3. There was no discussion in the 2011 Annual Report about old amounts to officers, directors or employees.

4. The footnotes do not mention organized labor, unions or collective bargaining.