Gateway to Grant Options to New CEO

Gateway Inc., a personal computer manufacturer that lost $1.84 billion in the last three years, said it would give options for 10 million shares to incoming Chief Executive Wayne Inouye.

The options will vest over four years and be priced at market value, according to the annual report filed by Poway, Calif.-based Gateway with the Securities and Exchange Commission.

Inouye is chief executive of EMachines Inc., which is being purchased by Gateway. He will receive an annual salary of $720,000, according to the filing.

Shares of Gateway closed up 22 cents to $5.43 on the New York Stock Exchange.