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PNC » Topics » L IABILITY A WARDS

This excerpt taken from the PNC 10-Q filed May 11, 2009.

LIABILITY AWARDS

Beginning in 2008, we granted cash-payable restricted share units to certain executives. The grants were made primarily as part of an annual bonus incentive deferral plan. While there are time-based, service-related vesting criteria, there are no market or performance criteria associated with these awards. Compensation expense recognized related to these awards was recorded in prior periods as part of annual cash bonus criteria. As of March 31, 2009, there were 441,058 of these cash-payable restricted share units outstanding.


 

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A summary of all nonvested, cash-payable restricted share unit activity follows:

 

In thousands   

Nonvested
Cash-Payable

Restricted
Unit Shares

     Aggregate
Intrinsic
Value

Outstanding at December 31, 2008

    202      

Granted

    645      

Vested and released

    (50 )    

Forfeited

    (10 )    
          

Outstanding at March 31, 2009

    787     $ 23,044

Total compensation expense recognized related to liability awards, including market valuation adjustments recorded during the first three months of 2009 on these awards, resulted in a net reduction to expense of approximately $2 million. The corresponding amount for the first three months of 2008 was approximately $1 million of net expense recognized for the quarter.

This excerpt taken from the PNC 10-K filed Mar 2, 2009.

LIABILITY AWARDS

In 2008, 2007 and 2006 we granted a performance unit incentive award each year to a senior executive. The grant is share-denominated with an initial specified target number of 47,000 share units for 2008, 26,400 share units for 2007 and 30,000 share units for 2006. The potential award is dependent on the achievement of certain performance criteria over a three-year period ending December 31, 2008 for the 2006 grant, December 31, 2009 for the 2007 grant, and December 31, 2010 for the 2008 grant. Final awarded performance units will be paid only in cash.

 

Additionally, beginning in 2008, we granted other cash-payable restricted share units to certain executives. The grants were made primarily as part of an annual bonus incentive deferral plan. While there are time-based, service-related vesting criteria, there are no market or performance criteria associated with these awards. Compensation expense recognized related to these awards was recorded in prior periods as part of annual cash bonus criteria. As of December 31, 2008, there were 91,449 of these cash-payable restricted share units outstanding.

A summary of all nonvested, cash-payable restricted share unit activity follows:

 

In thousands   

Nonvested
Cash-
Payable

Restricted
Unit
Shares

    Aggregate
Intrinsic
Value

Outstanding, January 1, 2008

    57     

Granted

    145     

Outstanding, December 31, 2008 (a)

    202    $ 9,878
(a) There were no share units vested and received or forfeited during 2008.

Total compensation expense recognized related to liability awards, including market valuation adjustments recorded during 2008 on these awards, resulted in a net reduction to expense of approximately $1.1 million. The corresponding amounts for 2007 and 2006 were approximately $1 million of net expense recognized in each year.

EXCERPTS ON THIS PAGE:

10-Q
May 11, 2009
10-K
Mar 2, 2009

RELATED TOPICS for PNC:

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