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PNC » Topics » I NCENTIVE /P ERFORMANCE U NIT S HARE A WARDS AND R ESTRICTED S TOCK /U NIT A WARDS

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

INCENTIVE/PERFORMANCE UNIT SHARE AWARDS AND RESTRICTED STOCK/UNIT AWARDS

The fair value of nonvested incentive/performance unit share awards and restricted stock/unit awards is initially determined based on prices not less than the market value of our common stock price on the date of grant. Incentive/performance unit share awards are subsequently valued subject to the achievement of one or more financial and other performance goals over a three-year period. The Personnel and Compensation Committee of the Board of Directors approves the final award payout with respect to incentive/performance unit share awards. Restricted stock/unit awards have various vesting periods ranging from 12 months to 60 months. There are no financial or performance goals associated with any of our restricted stock/unit awards.

We recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program. Total compensation expense recognized related to incentive/performance unit share awards and restricted stock/unit awards during the first three months of 2009 was approximately $4 million compared with $11 million during the first three months in 2008.

 

A summary of nonvested incentive/performance unit shares and restricted stock/unit share activity follows:

 

Shares in thousands   

Nonvested
Incentive/

Performance
Unit Shares

     Weighted-
Average
Grant
Date Fair
Value		   

Nonvested
Restricted

Stock/
Unit
Shares

     Weighted-
Average
Grant
Date Fair
Value

Dec. 31, 2008

    492     $ 61.63      1,735     $ 65.39

Granted

    7       30.33      985       33.05

Vested

    (192 )     64.27      (629 )     64.36

Forfeited

             (1 )     50.86
                     

March 31, 2009

    307     $ 59.31      2,090     $ 50.47

In the chart above, the weighted-average grant-date fair value of incentive/performance unit share awards is measured by reducing the grant date price by the present value of dividends expected to be paid on the underlying shares.

At March 31, 2009, there was $48 million of unrecognized deferred compensation expense related to nonvested share-based compensation arrangements granted under the Incentive Plans. This cost is expected to be recognized as expense over a period of no longer than five years.

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

INCENTIVE/PERFORMANCE UNIT SHARE AWARDS AND RESTRICTED STOCK/UNIT AWARDS

The fair value of nonvested incentive/performance unit share awards and restricted stock/unit awards is initially determined based on prices not less than the market value of our common stock price on the date of grant. Incentive/performance unit share awards are subsequently valued subject to the achievement of one or more financial and other performance goals over a three-year period. The Personnel and Compensation Committee of the Board of Directors approves


 

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the final award payout with respect to incentive/performance unit share awards. Restricted stock/unit awards have various vesting periods ranging from 12 months to 60 months. There are no financial or performance goals associated with any of our restricted stock/unit awards.

The weighted-average grant-date fair value of incentive/performance unit share awards and restricted stock/unit awards granted in 2008, 2007 and 2006 was $59.25, $73.83 and $67.36 per share, respectively. We recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program. Total compensation expense recognized related to incentive/performance unit share awards and restricted stock/unit awards during 2008 was approximately $51 million compared with $42 million in 2007 and $45 million in 2006.

A summary of nonvested incentive/performance unit shares and restricted stock/unit share activity follows:

 

Shares in thousands   

Nonvested
Incentive/

Performance
Unit Shares

    Weighted-
Average
Grant
Date Fair
Value		   

Nonvested
Restricted

Stock/
Unit
Shares

     Weighted-
Average
Grant
Date Fair
Value

Dec. 31, 2007

    316    $ 66.28    1,869     $ 60.20

Granted

    176      53.27    548       55.20

Vested

            (652 )     50.92

Forfeited

              (30 )     62.75

Dec. 31, 2008

    492    $ 61.63    1,735     $ 62.07

In the chart above, the weighted-average grant-date fair value of incentive/performance unit share awards and restricted stock/unit awards is measured by reducing the grant date price by the present value of dividends expected to be paid on the underlying shares and for estimated forfeitures on restricted stock/unit awards.

At December 31, 2008, there was $39 million of unrecognized deferred compensation expense related to nonvested share-based compensation arrangements granted under the Incentive Plans. This cost is expected to be recognized as expense over a period of no longer than five years. The total fair value of incentive/performance unit share and restricted stock /unit awards vested during 2008, 2007 and 2006 was approximately $41 million, $79 million and $63 million, respectively.

EXCERPTS ON THIS PAGE:

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

RELATED TOPICS for PNC:

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