Citibank 2014 Annual Report Download - page 180

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Total unrecognized compensation cost related to unvested stock
awards, excluding the impact of forfeiture estimates, was $659 million
at December 31, 2014. The cost is expected to be recognized over a
weighted-average period of 0.7 years. However, the value of the portion
of these awards that is subject to variable accounting will fluctuate with
changes in Citigroup’s common stock price.
Performance Share Units
Certain executive officers were awarded a target number of performance
share units (PSUs) on February 19, 2013, for performance in 2012, and to
a broader group of executives on February 18, 2014, and February 18, 2015,
for performance in 2013 and 2014, respectively. PSUs will be earned only
to the extent that Citigroup attains specified performance goals relating to
Citigroup’s return on assets and relative total shareholder return against
peers over the three-year period beginning with the year of award. The actual
dollar amounts ultimately earned could vary from zero, if performance
goals are not met, to as much as 150% of target, if performance goals
are meaningfully exceeded. The value of each PSU is equal to the value
of one share of Citi common stock. The value of the award will fluctuate
with changes in Citigroup’s stock price and the attainment of the specified
performance goals for each award, until it is settled solely in cash after the
end of the performance period.
Stock Option Programs
Stock options have not been granted to Citi’s employees as part of the annual
incentive award programs since 2009.
On February 14, 2011, Citigroup granted options exercisable for
approximately 2.9 million shares of Citigroup common stock to certain of
its executive officers. The options have six-year terms and vested in three
equal annual installments. The exercise price of the options is $49.10, equal
to the closing price of a share of Citigroup common stock on the grant date.
Upon exercise of the options before the fifth anniversary of the grant date, the
shares received on exercise (net of the amount required to pay taxes and the
exercise price) are subject to a one-year transfer restriction.
The February 14, 2011, grant is the only prior stock option grant that
was not fully vested by January 1, 2014, and as a result, is the only grant
that resulted in an amount of compensation expense in 2014. All other stock
option grants were fully vested at December 31, 2013, and as a result Citi will
not incur any future compensation expense related to those grants.