Capital One 2008 Annual Report Download - page 135

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117
A summary of 2008 activity for restricted stock awards and units is presented below:
Shares
(000)
Weighted-
Average
Grant
Date
Fair
Value
Unvested at January 1, 2008 .................................................................................................................................. 2,946 $ 68.44
Granted .................................................................................................................................................................. 1,329 $ 49.33
Vested .................................................................................................................................................................... (719) $ 76.06
Cancelled ............................................................................................................................................................... (328) $ 64.71
Unvested December 31, 2008 ................................................................................................................................ 3,228 $ 59.37
The weighted-average grant date fair value of restricted stock granted for the years 2008, 2007 and 2006 was $49.33, $64.63 and
$82.54, respectively. The total fair value of restricted stock vesting during the years 2008, 2007 and 2006 was $33.8 million, $79.6
million and $100.9 million, respectively. At December 31, 2008 there was unrecognized compensation cost for unvested restricted
awards of $83.4 million. That cost is expected to be recognized over the next 3 years.
Cash equity units vesting during the years ended December 31, 2008 and 2007 resulted in cash payments to associates of $30.1
million in both years. These cash payments reflect the number of units vesting priced at the Companys stock price as of the vest date.
At December 31, 2008 there was unrecognized compensation cost for unvested cash equity units of $25.4 million, based on the
average quarterly stock price. That cost is expected to be recognized over the next 3 years.
2009 CEO Grant
In January 2009, the Companys Board of Directors approved a compensation package for the Companys CEO. This package
included an opportunity to receive from 0% to 200% of the target number of 95,239 shares of the Companys common stock based on
the Companys performance over the three-year period from January 1, 2009 through December 31, 2011. The package also included
a grant of 970,403 nonstatutory stock options at an exercise price of $18.28 per share. The options will become fully exercisable on
January 29, 2012. Both awards are subject to restrictions regarding sale or transfer of the shares received until the earlier of the date on
which the U.S. Treasury no longer holds any shares of the preferred stock that the Company issued under the U.S. Treasurys
Troubled Asset Relief Program Capital Purchase Program (CPP) or one year after retirement from the Company. Compensation
expense of $6.0 million related to these awards will be recognized in 2009 under SFAS 123R.
2008 CEO Grant
In December 2007, the Companys Board of Directors approved a compensation package for the Companys CEO. This package
included 1,661,780 stock options which will vest upon the third anniversary date of the grant or upon departure from employment with
Capital One for reasons other than retirement. Upon retirement, these options will continue to vest in accordance with the original
vesting schedule. Compensation expense of $17.0 million for these options was recorded in 2007 in accordance with the retirement
eligibility provisions of SFAS 123R.
2007 CEO Grant
In December 2006, the Companys Board of Directors approved a compensation package for the Companys CEO. This package
included 595,000 stock options which will vest upon the fifth anniversary date of the grant or upon departure from employment with
Capital One for reasons other than retirement. Upon retirement, these options will continue to vest in accordance with the original
vesting schedule. Compensation expense of $18.0 million for these options was recorded in 2006 in accordance with the retirement
eligibility provisions of SFAS 123R.