Assurant 2010 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 of the 2010 Assurant annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

F-42 ASSURANT, INC.2010 Form 10K
18 Stock Based Compensation
Under the ALTEIP, the Company’s Chief Executive Offi cer (“CEO”) is
authorized by the Board of Directors to grant common stock, restricted
stock and RSUs to employees other than the executive offi cers of the
Company (as defi ned in Section 16 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)).  e Board of Directors
reviews and ratifi es these grants quarterly. Restricted stock and RSUs
granted under this program may have diff erent vesting periods.
Restricted Stock Units
A summary of the Company’s outstanding restricted stock units is presented below:
Shares Weighted-Average
Grant-Date Fair Value
Shares outstanding at December 31, 2009 793,363 $ 21.05
Grants 687,102 34.46
Vests (263,587) 21.00
Forfeitures (48,675) 26.53
SHARES OUTSTANDING AT DECEMBER 31, 2010 1,168,203 $ 28.72
e compensation expense recorded related to RSUs was $13,928 and
$7,200 for the years ended December 31, 2010 and 2009, respectively.
e related total income tax benefi t recognized was $4,875 and $2,520
for the years ended December 31, 2010 and 2009, respectively.  e
weighted average grant date fair value for RSU granted in 2009 was
$21.04.
As of December 31, 2010, there was $16,523 of unrecognized
compensation cost related to outstanding RSUs.  at cost is expected
to be recognized over a weighted-average period of 1.30 years.  e total
fair value of shares vested during the years ended December 31, 2010
and 2009 was $8,844 and $43, respectively.
Performance Share Units
A summary of the Company’s outstanding performance share units is presented below:
Performance
Share Units
Weighted-
Average Grant-
Date Fair Value
Weighted Average
Remaining
Contractual Term
(Years) Aggregate
Intrinsic Value
Performance share units outstanding, December 31, 2009 620,898 $ 20.39 2.20 $ 18,347
Grants 439,934 33.12 — —
Exercises — — — —
Forfeitures and adjustments (45,601) 28.06 — —
PERFORMANCE SHARE UNITS OUTSTANDING,
DECEMBER 31, 2010 1,015,231 $ 25.65 1.61 $ 39,107
PSUs above represent initial target awards and do not refl ect potential
increases or decreases resulting from the fi nancial performance objectives
to be determined at the end of the prospective performance period.  e
actual number of shares to be issued at the end of each performance
period will range from 0% to 150% of the initial target awards.
e compensation expense recorded related to PSUs was $10,772 and
$5,980 for the years ended December 31, 2010 and 2009, respectively.
e related total income tax benefi t recognized was $3,770 and $2,093
for the years ended December 31, 2010 and 2009, respectively.  e
weighted average grant date fair value for PSUs granted in 2009 was
$20.39.
As of December 31, 2010, there was $10,068 of unrecognized
compensation cost related to outstanding PSUs.  at cost is expected
to be recognized over a weighted-average period of 1.06 years.
e fair value of PSUs with market conditions was estimated on the
date of grant using a Monte Carlo simulation model, which utilizes
multiple variables that determine the probability of satisfying the
market condition stipulated in the award. Expected volatilities for
awards issued during the year ended December 31, 2010 and 2009
were based on the historical stock prices of the Company’s stock and
peer insurance group.  e expected term for grants issued during
the year ended December 31, 2010 and 2009 was assumed to equal
the average of the vesting period of the PSUs.  e risk-free rate was
based on the U.S. Treasury yield curve in eff ect at the time of grant.
For awards granted during the year ended
December 31,
2010 2009
Expected volatility 60.16 % 54.22 %
Expected term (years) 2.8 2.8
Risk free interest rate 1.30 % 1.29 %