Send us Feedback

Bank of America (BAC)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

BAC » Topics » Employee stock options

This excerpt taken from the BAC 8-K filed May 28, 2009.

Employee stock options

    Shares        Weighted
Average Exercise
Price

Outstanding at January 1, 2008

   228,660,049        $ 39.49

Countrywide acquisition, July 1, 2008

   9,062,914          150.99

Granted

   17,123,312          42.70

Exercised

   (7,900,507 )        30.94

Forfeited

   (14,516,711 )        59.92

Outstanding at December 31, 2008 (1)

   232,429,057          43.08

Options exercisable at December 31, 2008

   186,430,678          41.87

Options vested and expected to vest (2)

   231,919,145          43.08

(1)

Includes 53 million options under the Key Employee Stock Plan, 159 million options under the Key Associate Stock Plan and 20 million options to employees of predecessor companies assumed in mergers.

(2)

Includes vested shares and nonvested shares after a forfeiture rate is applied.

At December 31, 2008, the Corporation had no aggregate intrinsic value of options outstanding, exercisable, and vested and expected to vest. The weighted average remaining contractual term of options outstanding was 5.0 years, options exercisable was 4.2 years, and options vested and expected to vest was 5.0 years at December 31, 2008.

The weighted average grant-date fair value of options granted in 2008, 2007 and 2006 was $8.92, $8.44 and $6.90, respectively. The total intrinsic value of options exercised in 2008 was $54 million.

The following table presents the status of the restricted stock/unit awards at December 31, 2008, and changes during 2008:

 

 

This excerpt taken from the BAC 10-K filed Feb 27, 2009.

Employee stock options

    Shares        Weighted
Average Exercise
Price

Outstanding at January 1, 2008

   228,660,049        $ 39.49

Countrywide acquisition, July 1, 2008

   9,062,914          150.99

Granted

   17,123,312          42.70

Exercised

   (7,900,507 )        30.94

Forfeited

   (14,516,711 )        59.92

Outstanding at December 31, 2008 (1)

   232,429,057          43.08

Options exercisable at December 31, 2008

   186,430,678          41.87

Options vested and expected to vest (2)

   231,919,145          43.08

(1)

Includes 53 million options under the Key Employee Stock Plan, 159 million options under the Key Associate Stock Plan and 20 million options to employees of predecessor companies assumed in mergers.

(2)

Includes vested shares and nonvested shares after a forfeiture rate is applied.

At December 31, 2008, the Corporation had no aggregate intrinsic value of options outstanding, exercisable, and vested and expected to vest. The weighted average remaining contractual term of options outstanding was 5.0 years, options exercisable was 4.2 years, and options vested and expected to vest was 5.0 years at December 31, 2008.

The weighted average grant-date fair value of options granted in 2008, 2007 and 2006 was $8.92, $8.44 and $6.90, respectively. The total intrinsic value of options exercised in 2008 was $54 million.

The following table presents the status of the restricted stock/unit awards at December 31, 2008, and changes during 2008:

 

 

This excerpt taken from the BAC 8-K filed Feb 25, 2009.
Employee Stock Options
 
The fair value of stock options with vesting based solely on service requirements is estimated as of the grant date based on a Black-Scholes option pricing model. The fair value of stock options with vesting that is partially dependent on pre-determined increases in the price of Merrill Lynch’s common stock is estimated as of the grant date using a lattice option pricing model. These models take into account the


64

 

exercise price and expected life of the option, the current price of the underlying stock and its expected volatility, expected dividends and the risk-free interest rate for the expected term of the option. Judgment is required in determining certain of the inputs to the model. The expected life of the option is based on an analysis of historical employee exercise behavior. The expected volatility is based on Merrill Lynch’s implied stock price volatility for the same number of months as the expected life of the option. The fair value of the option estimated at grant date is not adjusted for subsequent changes in assumptions.
 

EXCERPTS ON THIS PAGE:

8-K
May 28, 2009
10-K
Feb 27, 2009
8-K
Feb 25, 2009

RELATED TOPICS for BAC:

"Employee stock options" elsewhere:

Fannie Mae (FNM)
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki